Crude Oil Stuck in Consolidation Watch for Breakout! Hey Traders so today was looking at oil market seems to be stuck in a very powerful pattern called the Narrow Sideways Channel. Basically market has been going no where for the last 75 days stuck between the highs and the lows moving back and forth moving sideways.
Most traders have probably fallen alseep because this market is boring as watching paint dry
just stuck in a range of $55-$65. I guess some traders can trade the range buy at the bottom or the channel sell near the top but imo the best way to trade is wait for a breakout of the channel.
Now if you research historical sideways channels or range markets you will find that almost every market that has ever traded sideways for more than 90 days or more led to an explosive breakout at one point in time!
Finally exciting news! That means the longer it consolidates the better for us traders to catch the breakout.
So if we look closely at the chart we can see right out of the channel top there is resistance ahead at $68. However if market can break above $68 and close above that level at the daily close that would be a serious buy signal for more upside. But don't go by intraday go by the close of the day intraday means nothing imo.
The Daily Close it all that counts!
So watch for breakout above $68 then look to buy on pullback if I does not break above $68 tje we are back to watching paint dry. 😂
Always use Risk Management!
(Just in case your wrong in your analysis most experts recommend never to risk more than 2% of your account equity on any given trade.)
Hope This Helps Your Trading 😃
Clifford
