Trading The Descending Triangle Pattern – WTI Crude Oil - Forex News by FX Leaders

Trading The Descending Triangle Pattern – WTI Crude Oil

Posted Monday, April 17, 2017 by
Arslan Butt • 1 min read

The WTI Crude Oil is trading sideways in a narrow trading range of $52.70 – $53.10 with no clear basis. However, it isn't at all surprising since we already knew that the market is unlikely to fluctuate in the absence of investors from several markets. Most of the markets are closed in the observance of Easter.

Aside from this, OPEC recently announced that its March production dropped by 153K barrels to 31.93 million barrels/ day. Considering the supply concerns investors are likely to increase the demand for a shorter period of time.

WTI Crude Oil - 4 Hourly Chart WTI Crude Oil – 4 Hourly Chart 

Technicals Outlook

If we look at an hourly chart, a descending triangle pattern catches our attention. The pattern is extending support to the crude oil at $52.65 along with a resistance at $53.15. All we need is to wait for a breakout. Yup, it seems unlikely today but we need to keep a close eye on it tomorrow in the early Asian sessions.

Talking about the leading indicators, the RSI is holding above 50's and the price is consolidating on the below and above the 50 periods EMA.

Forex Trading Signals

Considering the above points, I will be looking to add a buy position only above $53.22 with a stop loss below $52.85 and a take profit at $53.65. On the other hand, we can target $51.90 only if the market breaks below $52.65. Remember, we have EIA crude oil inventories figures being published tomorrow.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
Related Articles

Leave a Reply

Notify of