Price action has been very choppy on the daily crude oil chart, but if we place a line chart over the top is shows prices are trying to break out of a small triangle / pennant. Whilst these are usually expected to be continuation pattern, they can also make decent reversal pattern. And this case, we've see prices hold above $70 on a closing basis, and the lower candle wicks made a series of higher lows. Momentum is now turning higher.
Bulls could seek dips down to $72 (yesterday's low) or a break of its high, with an upside target around $78, near the 200-day MA and 100-day EMA.
Bulls could seek dips down to $72 (yesterday's low) or a break of its high, with an upside target around $78, near the 200-day MA and 100-day EMA.
Trade closed: target reached:
Oil prices rallied for a third day and met the $77 target after breaking out of the pennant on the daily chart.
