Crude Oil broke through a critical resistance cluster today triggering a breakout into “Open Air.”
Let’s highlight this trend change and pinpoint key price levels to watch into the future.
As highlighted to Weekly Strategy Planning Members, the critical focal-point for the week ahead was $60.00.
After a slight stall into this resistance level Monday, Crude Oil price broke and impulsed above this level today.
In the chart above, we have the highlighted $60.00 per barrel price pivot and today’s breakout bar thrusting price into the green “Open Air” pocket above $60.00.
Oil takes on a bullish breakout bias as long as it is above the $60.00 pivot.
The corresponding level in the USO ETF is the $22.00 per share level (representing $60.00 in oil).
A “Trap” scenario would occur on a sudden failure to hold above $60.00 so be aware of that outcome.
Oil would not be outright bearish unless it suddenly turns and breaks under the $55.00 EMA confluence spot.
I just wanted to post a quick update about the breakthrough and note the upside “Open Air” pathway may extend into the $70.00 level for a big reversal.
For more daily updates from Corey, visit his blog at Afraid to Trade.com.