Oil markets, technically speaking, have jumped out of the pennant pattern and have rushed up to the current bearish trend line in the market. While people might see this as a bullish breakout, it’s yet to really convince the markets.
We have the possibility of a movement upwards, breaking out of the trend line. However, this may only have steam to make it up to $100 dollars a barrel before we see a sharp pullback lower again. As current long term forecasts are bearish.
The second most likely option is a rejection of the trend line and a shift lower. This would likely see bears targeting between 92-91 dollars a barrel of oil.
Overall, oil is set for some interesting moves. It’s likely we may see a move lower, or a solid breakout from the trend line. But we will have to wait for tonights market movements to see if predictions come true.
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