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One of the largest upside wicks in the past 13 years took place in Crude Oil this past week at (1), while it was facing the Fibonacci 61% resistance level and the top of a rising wedge.  This “Power of the Pattern” situation suggests a roughly two thirds chance that Crude Oil will be soft for a while.  Speculators could attempt to score on defense here with a stop on an upside breakout.

Even though the Patterns suggest a short-term high is in Crude, an upside breakout of Fib and the wedge could free up Oil to reach the top of the channel, which currently stands around $140….Ouch!!!

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