Crude Oil jumped solidly above Resistance on the daily chart this week. The move was driven by bad news out of Iraq with oil production facilities threatened. But really the uptrend in Crude Oil has been building since last year.
This latest move means we’ve got confirmed breakouts above Resistance on the daily and weekly charts. And behind us we have Professional bars holding Support at $85 from last year and $95 this year. Plus the Commitment of Traders charts show a Bullish pattern similar to Gold in 2002.
I’m hoping this Crude Oil uptrend will surprise to the upside and really have long term legs. But let’s see. The Crude trade has taken a few weeks to develop but things should start to get interesting from now on.
Here’s a nice comment from James C. about the long view for Crude Oil:
“Hi Barry, Reason you should NEVER sell an oil position: 42 years ago my father bought only 25 shares of Exxon, we still have them, they’re worth over $50,000, held them through all the bear and bull markets.
You should NEVER sell even if you buy at a top because the long-term view looking out 20 to 30 years is very positive for oil/natural gas.” James C.
Good luck with your Emini trading next week.