Heating Oil futures, which are closely correlated in price movement with the broader crude oil complex, have formed a bullish Triangle chart pattern on the long term 240-minute candlestick chart shown here. Autochartist has detected an initial breakout from the pattern during this week's trading, and Wednesday's market action appears to have provided confirmation by successfully retesting the breakout level.
The breach of the resistance trend line at the upper end of this Triangle chart pattern found quick selling pressure, taking the market into the mid-range of the triangle before an intra-day reversal carried the market to a close well above the entry point. This retest behavior is often seen prior to a continuation of the breakout, as the major support at the within a triangle is seen as a floor for speculative buyers to add position on the market's technical strength.
The breakout registers a full 10 bars, indicating strong momentum behind the move. The projected price forecast paints a targeted range for the completion of this pattern between $2.59 and $2.65, which will put the nearby futures at new contract highs if achieved.
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