Crude Oil Finally Breaks Through to Open Air Pocket

May 5, 2015: 10:17 AM CST

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.

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Corey Rosenbloom, CMT
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1 Comment

One Response to “Crude Oil Finally Breaks Through to Open Air Pocket”

  1. Casson Says:

    Frankly speaking Crude Oil is never alone, it’s a massive part of whole market, if we see the Oil having any major movement, it’s common to see same on everything else, I am always aware of this fact so I keep close eye on Oil movements, I am lucky that my broker OctaFX is forever ready to help me out especially with their free news and analysis providing service, it’s really special following this and we can get great results because of it.