Light sweet crude oil has broken out of an ascending triangle with a minimum price target close to $113. The ascending triangle is a pattern that’s formed when an investment vehicle (in this case, light sweet crude) makes even highs and higher lows.
In this week’s chart, you can see that light sweet crude actually has an ascending triangle within a larger ascending triangle.
First let’s focus on the smaller one, drawn in black.
Light sweet crude made three even highs around $105 in early March, mid-April and late May. It made two higher lows in mid-March and late April/early May.
This allowed us to draw a horizontal trend line at $105, connecting the even highs, and an ascending trend line, connecting the higher lows.
Once the horizontal trend line was broken, we saw a breakout.