Light crude
oil or WTI continues in a tight consolidation with the 44.00 level acting as a
very good support. To the upside, the 55 day exponential moving average (purple
line) has acted as a good resistance, not allowing the price to break above
that zone. The highs of the daily candles appear to be lower than the previous
ones, forming what it appears to be a descending triangle. During a descending
triangle formation the energy accumulates at the lower support line, making it
more probable to break to the downside. If the price breaks below the 44.00
level, then the bearish momentum may take it to the 40.00 level. To the upside,
the 50.00 level could act as a resistance.
A break upward of the trendline may trigger a rally!
ReplyDeleteI've jumped in on the breakout of the pattern. Thanks for the post.
ReplyDeleteSo far so good. :-)
Still testing the resistance.
ReplyDeleteGreat analysis, will keep it in mind!
ReplyDeleteI agree with your analysis, thank you.
ReplyDeleteWell done important level
ReplyDeleteGood to know, thank you.
ReplyDeleteThe upcoming direction will likely depend on Chinese stocks' behavior.
ReplyDeletethank you for the useful information.
ReplyDelete