Light Crude Oil – Bullish Ascending Triangle Breakout With 100$ US Dollar Price Target

by Olivier on February 24, 2010

Just finished going through my public list and added annotations to several charts. The Light Crude Oil chart pattern is starting to draw my attention. Some 6 months ago I wrote about a false breakout move to the downside in oil. At that time I thought a 100 USD$ price target would be in the cards. Keep in mind this is a nice round number. From a psychological standpoint this is important as round numbers tend to act as price magnets. We are getting closer to a possible breakout and a 100$ price target looks quite feasible.

Price is holding up very well here. We witnessed a nice thrusting move that started last year and more recently the oil price consolidated forming a bullish ascending triangle pattern. A breakout would coincide with a separation move from the dotted black trend channel line.

Light Crude Oil WTIC

Up-to-date Light Crude Oil Price Chart on my public list.

The shipping and oil tanker stocks are starting to look like they might move up soon as well. I am closely watching the whole sector. Check the Shipping Sector Overview Chart to identify leading stocks early on. Right now I like TK – Teekay Shipping. It looks like it is building up decent pattern pressure. The sector chart contains the following stocks:

  • SEA – Claymore Global Shipping ETF
  • FRO – Frontline
  • TK – Teekay Shipping
  • SFL – Ship Finance International
  • OSG – Overseas Shipholding Group
  • DRYS – Dryships

It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so. – Samuel L. Clemens

Have a great evening!

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