"We've really been trading in this range from $51.50 to $57.50 and being that we've been in this for a bit now, I would expect for us to actually break through to the upside," said Wolfberg, head of U.S. cash equity trading at BNP Paribas. "I watched the commodity jump off the $45 level and it has been at this midpoint where we've been consolidating for two months," he added. "Resistance is coming in at $61.40, and I am watching that level closely."
Technicians often recognize consolidation patterns as clues to where a security could go next, as these chart formations tend to end in the direction from which they came. In crude oil's case we saw a 47 percent rally from the low in March to the year-to-date high in May. And Wolfberg believes it could be time to pick up where it left off. "I believe there is risk to the upside to possibly $70, which would complete the move," he said.
That's a 17 percent move higher than current levels and puts crude at the highest level since November 2014.