I see a chart formation indicating a reversal in the downtrend for WTI.
How far can he go from here?
West Texas Intermediate (USOIL) 4 hours Chart by TradingView
This energy commodity has been on a sell-off since mid-April, with the market's lack of focus on geopolitical tensions likely causing investors to ease into global supply concerns.
However, WTI appeared to have bottomed earlier this month, kicking off a rally that received additional support from improving oil demand outlook and global growth estimates.
Could this mark the end of crude oil's decline?
Remember that directional biases and volatility conditions in market prices are usually driven by fundamentals. If you haven't done your financial 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 commodity price has already completed what appears to be a complex inverted head and shoulders pattern on the four-hour time frame and is closing above the neckline resistance to indicate that an uptrend may be in order.
Crude oil even broke through the dynamic inflection points at the moving averages and the key psychological mark of $80 per barrel to indicate that the bullish momentum is gaining momentum. If this is the case, the bulls could set their sights on an uptrend of the same height as the chart pattern.
Note that the 100 SMA is still below the 200 SMA to indicate that there is some downside pressure remaining. Once again, the gap between the moving averages is narrowing to indicate that a bullish crossover may soon follow.
Do you think the commodity price could reach April highs from here?
