Brent Crude Oil Makes a Triple Top Pattern

Crude Oil has been on a range for a couple of weeks and it has failed at resistance three times.

Oil is bouncing inside the range

Oil Prices surged higher by the end of last week as OPEC+ decided to cut oil production more than the initial rumours which were counting on a 1 million barrels/day. Instead, Russia came forward cutting Oil production by 400,000 barrels/day on top of the 800,000 barrels that OPEC decided to cut.

So, the total cut went up to 1.2 million barrels/day and Crude Oil prices surged around $5 higher in the last several hours. UK Brent crude reached as high as $63.66. But that level had reversed Brent crude twice before that week, so it proved to be quite a tough nut to crack for Oil buyers.

Now, Brent Crude Oil has formed a triple top pattern. Not that it is a pattern in itself like the double top pattern which suggests that if the price breaks the neckline, it continues further down for as long as the distance between the two tops and the neckline.

But, it shows that the price has formed a pretty decent resistance area between $63.40 and $63.65-70. In fact, Oil has formed a range to be honest. If we look further back into the previous week and on Friday the week before that, then wee see that Brent crude has formed a support above $58.

So, you can trade the range for now if you see that Oil is about to turn bullish at the bottom of the range, or turn bearish near the top of it.

ABOUT THE AUTHOR See More
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

Related Articles

Comments

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers