WTI Crude Oil – Retesting Symmetric Triangle Pattern
Arslan Butt • 1 min read
The candlestick pattern "three white soldiers" on the 4-hour chart prompted a bullish bias for the WTI Crude Oil on Friday. Now, the scenario has changed a bit. Check out the oil key technical drivers for today.
WTI Crude Oil – Technical View
Beginning with the 4-hour chart, we can see the breakage of the symmetric triangle pattern. This will be help crude traders determine the trend. The symmetric triangle indicates indecision among investors, perhaps due to the lack of relevant fundamentals.
Crude Oil – 4-Hour – Symmetric Triangle Pattern
The prices have moved near the bullish trend line of the symmetric triangle pattern which is extending resistance at $47.50. The momentum indicators, RSI and Stochastic are trading near 97, in a massively overbought region, signaling a reversal in the crude oil prices.
The 50- periods EMA is supporting the oil at $47 (4H). This means the oil has room to drop until $47 to test the EMA.
WTI Crude OIl – Trade Idea
I'm taking a quick sell below $47.35 with a stop above 47.55 (20 pips) and a take profit at $47. Today, the market will mostly trade the technicals due to the absence of any major fundamentals.