WTI Crude Oil – Retesting Symmetric Triangle Pattern

The candlestick pattern "three white soldiers" on the 4-hour chart prompted a bullish bias for the WTI Crude Oil on Friday. Now, the scenar


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 Hours - Symmetric Triangle Pattern 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.

 
ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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