- An upside break of the Symmetrical Triangle has pushed the asset into a positive trajectory.
- The RSI (14) has shifted into a bullish range of 60.00-80.00, which adds to the upside filters.
- A pullback towards the breakout area will be a bargain buy for the market participants.
West Texas Intermediate (WTI), futures on NYMEX, is oscillating in a narrow range of $111.20-112.60 in the early European session. The asset has entered into a consolidation phase after a stellar upside move on Monday. The oil prices witnessed a strong upside move after violating the psychological resistance of $110.00 and have made a fresh monthly high at $112.65.
An upside break of the Symmetrical Triangle is advocating a bullish momentum ahead. The ascending trendline of the above-mentioned chart pattern is placed from April low at $92.65 while the declining trendline is plotted from March 24 high at $115.87. The asset is consolidating above the symmetrical triangle formation which indicates an upcoming pullback as the market participants test the strength of the chart pattern.
The 20- and 50-period Exponential Moving Averages (EMAs) at $108.27 and $106.10 respectively are scaling higher, which adds to the upside filters.
Meanwhile, the Relative Strength Index (RSI) (14) has comfortably shifted into a bullish range of 60.00-80.00, which signals more gains ahead.
The morning consolidation in the black gold is indicating a pullback towards the declining trendline of the chart pattern at $108.87, which may call for a responsive buying action. An occurrence of the same will drive the asset towards March 24 high at $115.87, followed by the psychological resistance at $120.00.
On the flip side, bulls could lose control if the asset tumbles below Monday’s low at $106.32. This will drag the asset towards Thursday’s low at $101.32. A slippage below Thursday’s low will bring further downside to near May 7 low at $97.21.
WTI four-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds below 1.0750 ahead of key US data
EUR/USD trades in a tight range below 1.0750 in the European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays firm above 156.00 after BoJ Governor Ueda's comments
USD/JPY stays firm above 156.00 after surging above this level on the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.