WTI crude oil bulls seem ready to charge once again, as the energy commodity found support at the bottom of a newly-forming triangle pattern.
Can it go further north from here?
Here are the upside targets I’m seeing on the 4-hour time frame:
WTI Crude Oil (USOIL) Chart by TradingView
Is crude oil done with its slump?
After losing ground on easing global supply concerns over the past few days, the energy commodity appears to be getting back on its feet as persistent geopolitical tensions in the Middle East are still leading to oil production woes.
This allowed price to find support at the bottom of a new symmetrical triangle and form a short-term inverted head and shoulders pattern, suggesting that more gains are possible.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on 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 above the 200 SMA to hint that buyers have the upper hand, so a break above these dynamic inflection points and reversal formation neckline around $72 per barrel could set off a climb to the triangle top.
Just keep an eye out for nearby resistance at R1 ($73.01 per barrel) which lines up with a major psychological level, especially since the latest EIA inventory report revealed a larger than expected build in stockpiles.
Stay on your toes for any headlines that could impact overall market sentiment and the supply or demand outlook for crude oil!
