Will we see a rebound or break in WTI Crude Oil?
The commodity is testing the triangle resistance again!
As you can see from the 4-hour chart below, the price made lower highs and found support around $67 per barrel, creating a descending triangle pattern.
West Texas Intermediate (USOIL) 4 hours Planned by TV
Crude Oil is currently hanging at the top of the chart, still deciding the next direction.
Technical indicators seem to point to another decline from here, with the 100 SMA below the 200 SMA to suggest that the path of least resistance is to the downside.
At the same time, these moving averages are around the triangle resistance, adding to their strength as a ceiling. Stochastic seems ready to turn lower as well, so the price may follow suit.
Then again, the oscillator may have some room to run higher before it actually reverses exhaustion among the buyers, so there may be enough bullish momentum to trigger a breakout higher.
Exceeding the top of the triangle at about $71 per barrel could lead to a rally similar to the chart pattern high, which extends from $67 to $77 per barrel.
Commodity traders may be waiting for any major updates from the OPEC meetings this week, as well as potential surprises from the FOMC Minutes and Non-Farm Payrolls release, so keep an eye out for those catalysts!