Crude Oil incoming weakness after established Irregular Top.
After this month's acceleration in Crude Oil (WTI) prices, the commodity looks poised for reversal after having experienced a considerable run-up out of a wedge pattern, commonly associated with a broad formation, given its uncertainty. The spike in price led to the formation of an Irregular Top which by its very nature implies a bearish move to follow.
Given the technical parameters surrounding the pattern. A bit of sideways action is to be expected from these levels, but if the price breaks below $79.00 a further retracement to $75.00 and possibly lower levels can be expected.
In terms of Seasonality, the summer driving season usually puts demand on crude prices given the surge in consumer driving activity. But one should not place conviction on this metric alone, given the broader price sensitivity of Crude oil.
Bearing in mind ever-evolving Geo-Political Tensions and Opec's constant attempts at rebalancing, the narrative is susceptible to change at any given moment and therefore one should be vigilant in their commitments and analysis from this point forward.
Given the technical parameters surrounding the pattern. A bit of sideways action is to be expected from these levels, but if the price breaks below $79.00 a further retracement to $75.00 and possibly lower levels can be expected.
In terms of Seasonality, the summer driving season usually puts demand on crude prices given the surge in consumer driving activity. But one should not place conviction on this metric alone, given the broader price sensitivity of Crude oil.
Bearing in mind ever-evolving Geo-Political Tensions and Opec's constant attempts at rebalancing, the narrative is susceptible to change at any given moment and therefore one should be vigilant in their commitments and analysis from this point forward.