Crude oil has been sailing above its supporting trendline for a couple of years now. I am, of course, watching with great interest to see if we get a break of that uptrend.
The reason it’s so important is because, on a much longer continuous contract, you can see how prone oil is to a significant breakdown. The commodity is up hundreds of percent, thanks to the OPEC cartel, but as history has shown, these forced uptrends have their breaking points.
I decided to try out the new Fibonacci Arc that we just launched in SlopeCharts to see if anything interesting came up. I used the min/max anchor points (see yellow tints), and – – how about that – – the prices are actually doing a lot of fascinating things with relation to those arcs! It seems to me that we are trapped under that lowest arc right now, which is repelling prices, and a fracture of that green uptrend will be a major sell signal.
