It appears as though the crude oil market [April contract] is coiling up and getting ready to spring upwards.
Here is our 3 main reasons for being bullish on crude oil.
# 1: All our Trade Triangles are green indicating that a very strong trend is in place.
# 2: Crude Oil tends to make major lows every eight or nine months (last major low in October) look at the weekly chart on the video and I’ll show you this.
# 3: The Crude Oil market tends to make a major high every 11 or 12 months.
Presently we are about 6 to 7 weeks away from making a major high in Crude. This cyclic pattern, if it persists, should push Crude up and into a new 6 week high in late March or early April. A move and close on Friday over $103.38 should be viewed as very bullish for Crude Oil, indicating sharply higher levels to come in the weeks ahead.
Big Picture: Strong Trend +100
Trade Triangles: Long Term = Bullish....Intermediate Term = Bullish....Short-Term = Bullish
MarketClub scoring: Trading Range (50 to 65) : Emerging Trend (70 to 80) : Strong Trend (85 to 100)
March crude oil was higher overnight as it extends this month's rally. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term.
If March extends this month's rally, January's high crossing at 103.90 is the next upside target. Closes below the 20 day moving average crossing at 99.36 would temper the near term bullish outlook.
First resistance is the overnight high crossing at 102.95. Second resistance is January's high crossing at 103.90. First support is the 20 day moving average crossing at 99.36. Second support is this month's low crossing at 95.44.
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As with any market analysis there are no guarantees. Always use stops to protect capital and never trade with funds that you cannot afford to lose. With our monthly, weekly and daily Trade Triangles all in a positive mode, we expect to see further gains in Crude Oil.