Jim Letourneau's Blog

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Oil's Well that Ends Well

There has been a stellar run in the oil price and oil company shares have been on fire. However many of the high flying oil companies are down over 20% over this week. Momentum traders were anticipating a double top pattern forming on the oil price chart as it approached its previous high of ~$55.

I have flagged a couple other potential double top set ups that failed on the oil chart. The failure of a bearish pattern to complete is exceptionally bullish. It wouldn't shock me to see oil get into the mid $60's before it slides down for a major breather. We might need to reload at $50 first though.

For a big picture view check the 15 year oil price chart and see the potential for further upside.

Oil Price

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