WTI crude oil has formed lower highs and found support at $67 per barrel to create a descending triangle on its 4-hour chart.
Is it gearing up for a breakout soon?
WTI Crude Oil (USOIL) 4-hour Chart by TradingView
WTI crude oil has been tossing and turning inside this triangle consolidation pattern while geopolitical tensions have escalated and cooled over the past months.
This time, the energy commodity has found support at the descending triangle bottom once more, driven by worsening violence in Syria and resurfacing global supply concerns.
In addition, the OPEC+ decision to delay its planned production hike by three months also dampened fears of a potential glut, lifting WTI crude oil closer to its triangle resistance.
Will it be able to bust through this time?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on WTI crude oil and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
The 100 SMA is below the 200 SMA to suggest that the path of least resistance is to the downside, hinting that resistance near R1 ($69.38 per barrel) is more likely to hold than to break. If that happens, keep an eye out for another dip back to support or at least until the pivot point level ($68.19 per barrel).
A break above the triangle top, on the other hand, could spur a rally that’s the same height as the chart formation, possibly lifting crude oil to the next bullish targets at R2 ($71.67 per barrel) then R3 ($72.86 per barrel).
As always, watch out for other top-tier catalysts that could impact overall market sentiment, and make sure you practice proper position sizing when taking any trades!