Crude breaks out of its triangle, but watch out for the throwback
- Crude oil set for a test of its 2016 high
- RSI has not dipped below 40 since August
- Beware 'throwback' move in crude
At the time of this writing the RSI is above 60, but even more telling, perhaps, is the fact that the indicator has at no time since August been below 40, indicating bullish sentiment and a positive trend.
However, beware of a throwback after the breakout. A throwback is where the instrument – in this case oil – gets "thrown" back to test the upper trendline on the upside and sometimes gets thrown all the way back into the triangle.
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