How to Play the Breakout in Oil

Crude oil has broken out in a big way this week. Wednesday, the U.S. Energy Information Administration reported that crude oil inventories fell by 2.6 million barrels. That news helped boost oil prices to a one-month high and extended a breakout that began earlier in the week.

Is the oil rally likely to continue? According to the chart, the answer is yes. In the second half of last year, crude oil was in a persistent uptrend, leading to a gain of about 50% (point A to B). Then, during February and most of March, oil consolidated those gains, forming a symmetrical triangle in the process (dotted lines). Finally, the consolidation resolved with a break to the upside (point C)....292 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.