Technically speaking, the move in Oil could be a gusher

• Posted by Greg Harmon
• on October 7th, 2015

Oil lit up traders screens yesterday with a strong move higher. It still has not gotten over the August high but looks like it may Wednesday. Just how high can it go? Technically, it has a lot further to run.

The chart above shows the move higher in West Texas Crude, out of a technical pattern, a symmetrical triangle. This action suggests a continuation higher. With the strong momentum indicators (RSI and MACD) backing it up, it gives a target to the upside of about $57.

You can see that it has potential to run into some over head supply there as it exchanged hands among traders in a range from $58 to $61 for nearly two months this Spring. But that is still a long way above. Enjoy the gush higher for now.

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