Near Term Trend: Positive
Friday’s Close: $52.85 (+ $ .92 cents)
UPDATE: NOTE: We rolled to the February contract.
Our commentary last week (as the December contract had just settled at $47.01) was as follows, “In conjunction with the contract rallying over $1.80 in one day (this past Friday) the contract traded above the neckline of the Inverted Head & Shoulder pattern. Based on that alone this current move could extend toward the $50.00 region”.
As it turned out, the contract not only rallied another $3.00 to meet our upside target, but has continued onward, effecting a 13% rally for the week. NOTE: The power of technical analysis: the Inverted Head & Shoulders preempted the OPEC agreement to cut production.