The good news from the past few years of price action in light sweet crude oil, after its historical run up and crash in 2008, is that we now have a better-defined frame of reference. On the monthly chart below of crude, note the resistance and support trendlines coming into play as a massive symmetrical triangle pattern has emerged. The more times price reacts to a given trendline beyond an isolated trivial incidence, the more valid the market deems it to be. Given all of the implications to and inferences from high or low oil prices, it sure will be interesting to see in which direction this resolves.
My sense is that the price range will continue to narrow even more before we get an explosive breakout. Either way, watch this pattern develop.
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Wait, how is that flaming barrel of garbage heating the water?
Looks like the water is pumped through metal tubing (left over from Jethro’s still) inside the trash can.
And they also simultaneously pump in hot air into the tub. Clever.
I will defer to Woodshedder on that question.
From the cycle perspective, Oil can be bot here!