Crude Oil futures (CL..) has been trading within a volatile trading range throughout the month of October. However, the last two sessions have been more quiet than normal, which points to a potential breakout opportunity for today’s session. Here’s why..
Inside Value Relationship
The 15-minute chart shows a 2-Day Inside Value relationship has formed, whereby today’s value area is inside the value area from yesterday’s market. This type of relationship usually precedes a major breakout opportunity, especially if price opens outside the prior day’s range.
Watch $82.90 and $81.80 for early signs of a breakout, as such a move could spark a trending session in the direction of the break.
Inside Day Relationship
The daily chart shows price has also formed an Inside Day pattern, whereby yesterday’s price range was inside the price range from two session’s ago. Like the Inside Value relationship, the Inside Day formation usually forecasts a breakout opportunity.
Continue to watch the outer boundaries of yesterday’s range for breakout confirmation.
You can learn more about the 7 Types of Two-Day Pivot Relationships in my book Secrets of a Pivot Boss.
Let’s see how this plays out!
Cheers!
Frank Ochoa
PivotBoss.com
Follow Frank on Twitter: http://twitter.com/PivotBoss
