Courtesy of Chris Kimble.
Could higher Crude prices, create a positive ripple effect on stocks globally? Possible! Has higher Crude price “always” correlated with higher stock prices? Nope!
Below looks at the price pattern of Crude Oil over the past 30-years.
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Crude Oil has spent around 90% of the past 30-years, inside of rising channel (1). The bottom of this channel was hit 11-months ago, where support held and a strong rally followed.
Crude over the past six months, looks to have created a bullish ascending triangle and is attempting a “dual breakout” of channel and ascending triangle resistance at (3).
A couple of weeks ago the Power of the Pattern shared that the measured move in Crude Oil suggested it could reach at least $75 (Rally 50% from current levels), due to measured move calculations.
Strength at (3), would be a good sign for Crude Oil and energy stocks. Full Disclosure-Premium Members are long the energy sector.
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