The Crude Oil complex continues to show remarkable resilience, even as tensions in the Middle East have softened. The technical picture for the bull market remains intact after initial weakness earlier in the week, and the US oil futures appear to be taking cues from the Brent Crude market- currently trading near $17 a barrel premium over its North American counterpart. This may be the driving force behind the swift breakout seen in Heating Oil futures, which closely track the rest of the complex.
Heating Oil surged higher and broke out of a classic Ascending Triangle chart pattern, shown here on the 240-minute time interval. The breakout, measuring 8 bars to indicate high momentum, carried the market from the middle of the triangle to well above the key resistance at $2.78 per gallon.
This action projects a price forecast towards contract highs in the nearby futures, with a minimum upside target now showing at $2.82 and an upper end of the range projected near $2.86, which may signal a broader rally for the entire crude oil market in the near term.
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