CONTRACTING RANGE ON OIL MAY PROVIDE TRADING OPPORTUNITIES

USOIL

The price has been trading in a tightening triangle/pennant range for the past 2 months. I am more bullish here as the prevailing trend is up and the support stronger because of the rising gap from the last week.

I am looking for a break above 54.00 to target the 61.8% and 100% breakout targets around 56.85 and 58.70.

A downside break below 51.05 would indicate a move towards the rising trendline support around the 61.8% breakout target at 48.60.