The daily bar chart pattern of WTI Crude Oil appears to have formed a bearish 'descending triangle' pattern. A likely breakout below 43 can drop oil's price to its Aug '16 low of 39.
All three daily technical indicators are in neutral zones and not showing much upward momentum. The three EMAs are moving sideways and gradually converging together. A sharp move is likely to follow.
All eyes are on the unofficial OPEC meeting in Algiers later this week. Saudi Arabia has suggested a cut in production to stabilise prices but Iran is refusing to toe the line.
If producers manage to reach an agreement on an output freeze, oil's price may see an upward bounce. But such an agreement seems unlikely due to geo-political rivalry between Saudi Arabia and Iran.
Brent Crude Oil chart
The daily bar chart pattern of Brent Crude Oil seems to have formed a bearish 'descending triangle' pattern. A likely breakout below 45 may drop oil's price to test its Aug '16 low of 41.50.
Of the three technical indicators, MACD and Slow stochastic are in bearish zones while RSI is in neutral zone. The 20 day and 50 day EMAs have converged and are falling towards the 200 day EMA.
If OPEC countries fail to agree on a production freeze, oil's price can drop to 40.
On longer term weekly chart (not shown), oil's price is oscillating about its converging 20 week and 50 week EMAs, and is trading well below its falling 200 week EMA in a long-term bear market. Weekly technical indicators are in neutral zones, but none are showing any upward momentum.