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Crude Oil Maintains Breakout

By January 7, 2013

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Crude oil futures have been holding steady above the breakout from a couple weeks ago out of a major trading range.  Crude oil had been stuck in a range between 85 and 90 for a couple months, but now the market is exploring higher prices.

This technical breakout is looking more legitimate by the day.  When a market breaks out and holds those levels for a prolonged period, it is likely the market will continue to move in that direction.  The market could test the $100 level on this run.

The main fundamental reason for the move has to do with a more upbeat outlook on the economy.  The Fiscal Cliff issue has been averted and some of the economic numbers are looking better.  We also have to consider that China looks like they are back on track and Japan is flooding their economy with easy money.

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