Technical analysis: Oil roars after breaking quadruple top
Oil rallies to highest levels of 2015:
Technical analysis doesn't get any simpler than the oil trade today. Greg had a great video the other day where he talked about not making trading too complicated and keeping your technical analysis to the basics.
Oil today is a perfect example. It broke above the February high of $54.24 -- a level I highlighted repeatedly. And then it rallied another $2. If you wanted confirmation, it broke above the 100-day moving average for the first time in ages as well.
In all, crude gained nearly 6% on the day at the highs at $56.69.
WTI crude daily with 100dma
Oftentimes after a breakout, you'll get the 'buyer's remorse', which is when the market goes back and tests the old range before continuing higher. It doesn't happen in extremely strong trends when the market has a great reason to move but I don't think oil is one of those markets (but watch the news).
The other thing to consider is that oil has lots of room to run from here. There isn't any resistance until close to $65 so longs might want to load up on a smaller rather than bigger dip towards $54.50.