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Can you believe this crude break out?

Can you believe this crude break out?

Strange as it would have seemed just weeks ago, West Texas Crude Oil has broken out on the upside. This seems incredible. Already this year a number of forecasters have called for $20 or even $10 a barrel, yet oil price action is undoubtedly bullish:

20160421 wti

Naturally, traders are suspicious. And this could be a false break. The MACD is narrowing, pointing to waning momentum, and a fall back through $42 combined with a MACD roll over would be a very bearish development.


On the face of it, this is a break out, suggesting a clear shift of risk to the upside. There is potential for a test of the October highs above $50 a barrel.

What do you think? Is this a break out, or a false alarm? Either way, what is your price target for West Texas?

Let us know using the comment box below.

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