Chart of the Day - Tuesday, May 25th, 2021

Today’s Chart of the Day was shared by Greg Rieben (@gregrieben). It’s a weekly candlestick chart of  WTI Crude Oil futures over the past three years. Greg points out that Crude Oil is testing a key level of around $66 per barrel. This level has acted as resistance three times over the past two years. Generally speaking, the more times a level is tested, the more likely it is to break through. Think of it like hitting a brick wall with a sledgehammer. You might not break through the wall on the first attempt, but each time you hit it, the wall becomes weaker and weaker until you eventually smash through it. It’s also worth noting that Crude Oil’s bullish seasonal pattern  doesn’t peak until late September. So, a move higher throughout the Summer months would be in line with seasonality. Will the fourth time be the charm for Crude Oil? Or, will $66 act as resistance once again? Stay tuned!