The Rising Wedge, shown here on the Autochartist 30-minute candlestick chart, highlights the impressive momentum of the last surge, as short-covering, fear-driven end users and speculators piled into the world's crude oil futures. The Brent futures encountered some selling pressure at the upper band of the Rising Wedge, but gained nearly $6 per barrel in the run-up to that resistance area in less than two trading sessions.
The initial breakout sets up a technical picture for a continuation of the rally. The price for Brent Crude is projected to reach a minimum of $112.76 with the higher end of the targeted range coming in at $114.20, with the US Crude Oil futures trailing behind in price, but more than likely following in the same direction.
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