Registered: Jan 2011
02-20-12 04:30 PM
Quote from NoDoji:
OK, I've annotated my daily chart to show what I meant by channel breakout. You are correct in that oil met resistance several times as it tested the upper channel/trend line (UTL) of the channel, but Monday broke out. Technicians view that move as a channel breakout or a bull flag continuation breakout as described here:
So if I was swing trading, I'd be long and looking for a minimum profit target of at least a measured move equal to the range of the last run up prior to the bull flag formation, which takes us to around 106.62.