Are oil prices about to rise soon?
This is a short-term consolidation pattern that I am watching on the hourly chart of WTI Crude Oil.
Crude Oil WTI (USOIL) 4 hours Chart by TradingView
Negative price pressures have been weighing on this energy commodity, as weaker growth expectations in the US weigh on demand estimates.
Crude oil formed lower highs and found support around $81.00 per barrel, creating a clear descending triangle pattern on the hourly chart.
Is this ongoing support test about to trigger a bounce or break?
Remember that directional biases and volatility 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 take a look at the economic calendar and stay up to date with the daily fundamental news!
Not even a bigger-than-expected draw in U.S. Energy Information Administration inventories or growing speculation of a dovish move by the Federal Reserve in September has been enough to spur a sustained move higher in commodity prices these days.
However, a bearish break of the triangle support near S1 ($80.74/bbl) could trigger a drop to the same height of the formation or at least take it to the next floor at S2 ($79.35/bbl).
On the other hand, if crude oil continues to defend the bottom, watch for a bounce to the resistance level at the pivot point ($82.23 per barrel). Just note that this coincides with the dynamic turning points at the moving averages and that the 100-day SMA is below the 200-day SMA to reflect the bearish sentiment.
Do you think crude oil could stay in its pattern until the end of the week?
