WTI, following its
precipitous decline of 2015, found a bottom of $27.5 / barrel in January of
this year. A strong rally ensued with
the year’s high of $52 printed in June.
Since then, however, we have struggled for clear direction.
Inspection of the
weekly charts offers some pattern possibilities that are currently
morphing. A massive 16-month ascending
triangle appears to be the predominant pattern with the upside boundary line at
52 and the downside boundary at approximately 44. We are currently exactly in the middle of
this range, at 48, perhaps perfectly indicating the markets current indecision
as to the next trend.
Should we get a
confirmed break, on either side, price targets a possible plus/minus $20
move. Ascending triangles are generally
bullish patterns, though not always.
Perhaps next week’s OPEC announcement will be the catalyst to start this
new trend?
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