Crude Oil has broken out with a sharp rally that easily surmounted a daunting-looking Hidden Pivot target at 63.08 (see inset) on the weekly chart. We’d been using a 63.59 target for the December contract to stay comfortably on the right side of the uptrend. Shifting to the February futures, we see that this week’s so-far high at 64.77 surpassed the target by a whopping $1.69. If the rally continues, moving above a zone of resistance between 62 and 69 created early in 2015, it would augur more upside to $75 or even higher in 2018. This could not possibly be due to the mere curtailment of supply by OPEC et al. What it implies is an upsurge in the global economy that has yet to live up to the by-now constant hubris of the financial press.
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