The December Crude oil contract has been in a relatively tight balance bracket of 84.66 to 87.42 for the last 10 days. Additionally the market has been testing the bottom of that balance bracket for the last 2 days.
BE READY FOR A BREAKOUT
When a volatile market such as crude oil is contained within such a tight balance for a period of time, a significant move usually follows the breakout from balance. A break from such an extended, tight range could last a couple days.
UPSIDE
Over the last 2 days, the market has a 2 day value range of 85.85 to 85.50. If the market builds value abive that 2 day value range, look for a rotation back up to the 87.42 balance bracket high.
If the market gains acceptance above the 87.42 balance bracket high, look for it to fill the 87.42 to 88.58 gap.
DOWNSIDE
If the market gains acceptance below the 84.66 balance bracket low, the downside references from the weekly and monthly charts are 83.65 and 82.10.
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