The last 5-months Crude Oil has experienced a strong rally and has been much stronger than the S&P 500 (gained 27% more), highlighted in the chart below-
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This strong rally now has Crude testing what could be an important price zone for one of the worlds most important commodities-
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The impressive 5-month rally in Crude is now testing the underside of two channels and its 38% retracement level of the 2013 highs/2016 lows at (2).
Crude is pushing on a very important price zone that bulls so want to see a breakout take place, not selling pressure to start. Smart money traders are betting Crude will head lower, similar to the degree they bet Crude would head lower in 2013/2014.
The Power of the Pattern is of the opinion that what Crude does here, could send an important intermediate message about the future direction of Crude Oil. Bulls would love to see a breakout at (2)!!!
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