March Nymex crude oil futures have been trading within a $94.95 to $96.89 balance bracket for the last eight days. Additionally, the past three days have nearly identical daily ranges.

BE READY FOR A BREAKOUT

When a volatile market such as crude oil is contained within such a tight balance for an extended period of time, a significant move usually follows the breakout from balance.

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$95.65 SUPPORT LEVEL

In three of the last five days, the market has traded below $95.65, but was quickly rejected, and the market rallied off that level. If the market gains acceptance below that $95.65 suport level, it may test the $94.80 to $94.95 gap below.

UPSIDE BREAKOUT

If the market gains acceptance above the $96,89 balance bracket high, it may test the $98.20 weekly/monthly chart upside reference. Its possible that the market could trade above $98.20 reference and FAIL, so be patient in putting on a long position. There’s a good possibility that there are stops at that level. Traders may buy the market up to that reference, then sell into the stops the 1st time up. It is better to be a little late entering a trade than to be alittle early.

DOWNSIDE REFERENCES

If the market gains acceptance below the $94.80 to $94.95 gap, it may test the $93.67 reference. Again, be patient in entering a position.

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