Looking at ticker USO as a proxy for crude oil we see that price is presently within a key support and resistance “zone”.Figure 1 – Ticker USO with key support and resistance levels (Courtesy: www.freestockcharts.com)
As you can see in Figure 1, the price range bounded by $15.61 on the lower end and $16.45 on the upper end has served alternately as support or resistance on various occasions.
Classic technical theory would suggest that:
*An upside breakout above $16.45 would suggest higher prices to follow and;
*A downside breakout below $15.61 would suggest lower prices to follow.
If you want to trade oil, keep a close eye on these price levels in the hours and days ahead.