WTI bulls appear to be ready for another rally, as the energy commodity found support at the bottom of a newly formed triangle pattern.
Can you go north from here?
Here are the upside targets I see on the 4-hour time frame:
West Texas Intermediate (USOIL) Chart by TradingView
Is crude oil’s decline over?
After losing ground to waning global supply concerns over the past few days, the energy commodity appears to be getting back on its feet as ongoing geopolitical tensions in the Middle East continue to lead to oil production issues.
This allowed the price to find support at the bottom of a new symmetrical triangle and form a short-term inverted head and shoulders pattern, indicating the potential for further gains.
Remember that directional biases and volatility conditions in market prices are usually driven by fundamentals. If you haven’t done your homework on Crude Oil and the US Dollar yet, it’s time to check the economic calendar and stay up to date with daily fundamental news!
The 100 SMA is above the 200 SMA to indicate that buyers have the upper hand, so a break above the dynamic inflection points and the reversal neckline around $72 per barrel could trigger a climb to the top of the triangle.
Just keep an eye out for nearby resistance at R1 ($73.01 per barrel) which corresponds to a major psychological level, especially since the latest inventory report from the EIA revealed a larger-than-expected increase in inventories.
Stay on your toes for any headlines that could impact overall market sentiment and the outlook for crude oil supply or demand!