Oil has been in a relentless uptrend since its Feb bottom at ~$26/bbl. The divergent low told me to expect a good rally but this has gone well beyond anything I expected especially when considering the fundamentals and head winds it faces. This trader’s fueled rally has now taken it up to an area of major resistance, $51-$53. As you can see, price has formed a divergent oversold high bearish rising wedge with falling volume.
Investing offers no guarantees but a confirmed break of this pattern (before it has a chance to confirm a close above resistance – otherwise all bets are off) to the downside provides an excellent exit for those long black gold. And for those blessed with excellent position management skills and ability to short, the first downside target of this pattern is the $41-$42 area offering a 15%-20% profit opportunity.