Oil Starting to Break Out of Multi-Month Consolidation

Many commodities have been rallying strongly since July. A notable exception has been oil and oil stocks, who just this past week may have finally started to break out of multi-month consolidations. Oil has been in a trading range since the beginning of 2010, while oil stocks have been consolidating for over a year now, since October 2009. The following charts show oil and oil stocks starting to break above their multi-month consolidations as they rallied strongly again last week.  A rally in the energy sector would give an added boost to the current trend higher in commodities.