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TFC Commodity Trading Forum

April Crude/Testing the Breakout Point *PIC*

April Crude broke out above $103-$105 major resistance level and typically ran up higher. Price is now classically pulling back to the breakout point for a 'test' of that breakout level. While the major breakout point was $105 price could pullback to the $103 area just as easily and still be a successful test. A breakdown of $103 would be a failure to hold and suggest a pullback to at least its uptrendline at $100 or worse. Seasonal trends are bullish but seasonal trends since the fall have not been typical. There is very little price resistance between $105 and $114 and the odds favour a rally to a double top at $114 with the recent breakout over $105. 1st things 1st, and price must successfully test this breakout point and rally again to confirm.