Every once and a while, there is a "Perfect Storm" formation of a breakout pattern across the various
time frames, as we showed in the previous article, Crude Oil - Major Breakout Potential, from the larger
Quarterly time frame down to the daily. The weekly chart, below, shows precisely how the rally through
the previous trading range triggered the up move, which has more to go.
Once crude bottomed, starting December 2008, it formed a broad trading range with 23 March as the high
and a very small range that caused price to retreat for the next five weeks. This chart is replete with so
many technical observations. The small weekly range just mentioned is typically a red flag. Buyers were
unable to keep control, and sellers were present to prevent price from extending higher. That is what set
the stage for the next five week decline. (more)
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