WTI Crude Oil chart
After breaking out below a 'diamond' reversal pattern, the daily bar chart pattern of WTI Crude Oil has been consolidating sideways within a 'symmetrical triangle' pattern. The 50 day EMA is bisecting the 'triangle'.
A 'triangle' is usually a continuation pattern. So, the likely breakout should be below the pattern. However, a 'triangle' is also an unreliable pattern. Since the pattern has formed above the rising 200 day EMA in a bull market, an upward breakout can't be ruled out.
It may be prudent to wait for the breakout before initiating any buy/sell action.
Daily MACD and RSI are in neutral zones, and not showing upward momentum. Stochastic is rising above its 50% level. (At the time of writing this post, oil's price has retreated a bit after facing resistance from the upper edge of the 'triangle'.)
On longer term weekly chart (not shown), oil's price received support from its 20 week EMA, and closed above its three weekly EMAs in long-term bull territory. Weekly technical indicators have corrected overbought conditions, and are showing downward momentum in bullish zones. A bit more consolidation is possible before a breakout from the 'triangle'.
Brent Crude Oil chart
The following comment appeared in the previous post on the daily bar chart pattern of Brent Crude Oil: "Slow stochastic is seeking support from the edge of its oversold zone, and can trigger a technical bounce."
The expected technical bounce turned into a 2 weeks long rally that has formed a bearish 'flag' pattern, from which the likely breakout is downwards.
Oil's price is trading above its rising 200 day EMA in a bull market. A downward breakout from the 'flag' may not lead to a deep correction.
Daily technical indicators are turning bullish. MACD has formed a bullish 'rounding bottom' pattern, and crossed above its signal line in bearish zone. RSI has moved up to its neutral zone. Stochastic has entered its overbought zone, and can trigger a correction.
On longer term weekly chart (not shown), oil's price closed above its three weekly EMAs in long-term bull territory. Weekly MACD is falling below its signal line in bullish zone. RSI has bounced up after receiving support from its 50% level. Stochastic has bounced up after receiving support from the edge of its oversold zone.
After breaking out below a 'diamond' reversal pattern, the daily bar chart pattern of WTI Crude Oil has been consolidating sideways within a 'symmetrical triangle' pattern. The 50 day EMA is bisecting the 'triangle'.
A 'triangle' is usually a continuation pattern. So, the likely breakout should be below the pattern. However, a 'triangle' is also an unreliable pattern. Since the pattern has formed above the rising 200 day EMA in a bull market, an upward breakout can't be ruled out.
It may be prudent to wait for the breakout before initiating any buy/sell action.
Daily MACD and RSI are in neutral zones, and not showing upward momentum. Stochastic is rising above its 50% level. (At the time of writing this post, oil's price has retreated a bit after facing resistance from the upper edge of the 'triangle'.)
On longer term weekly chart (not shown), oil's price received support from its 20 week EMA, and closed above its three weekly EMAs in long-term bull territory. Weekly technical indicators have corrected overbought conditions, and are showing downward momentum in bullish zones. A bit more consolidation is possible before a breakout from the 'triangle'.
Brent Crude Oil chart
The following comment appeared in the previous post on the daily bar chart pattern of Brent Crude Oil: "Slow stochastic is seeking support from the edge of its oversold zone, and can trigger a technical bounce."
The expected technical bounce turned into a 2 weeks long rally that has formed a bearish 'flag' pattern, from which the likely breakout is downwards.
Oil's price is trading above its rising 200 day EMA in a bull market. A downward breakout from the 'flag' may not lead to a deep correction.
Daily technical indicators are turning bullish. MACD has formed a bullish 'rounding bottom' pattern, and crossed above its signal line in bearish zone. RSI has moved up to its neutral zone. Stochastic has entered its overbought zone, and can trigger a correction.
On longer term weekly chart (not shown), oil's price closed above its three weekly EMAs in long-term bull territory. Weekly MACD is falling below its signal line in bullish zone. RSI has bounced up after receiving support from its 50% level. Stochastic has bounced up after receiving support from the edge of its oversold zone.
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