Crude oil prices have been on a roller coaster ride for the past few days. After four consecutive days of losses, West Texas Intermediate (WTI) crude oil picked up bids and is currently trading around $78.30 during early Friday morning in Europe. The black gold prices have pared their weekly losses and posted the first daily gain in five while staying inside a one-week-old symmetrical triangle formation.
The symmetrical triangle is limiting the energy benchmark’s short-term moves between $79.60 and $77.70. If the commodity prices rally beyond $79.60, the $80.00 round figure and the weekly top of $80.75 could act as additional upside filters for the WTI bulls to watch. On the contrary, a downside break of the triangle’s lower line could trigger a fresh fall in the Oil price.
The 50-SMA and bearish MACD signals are challenging the Oil buyers. However, the steady RSI line suggests further grinding of Oil price. If the WTI crude oil bears keep the reins past $72.50, January’s bottom of $70.27 and the $70.00 round figure should act as the final stops for the buyers before leaving the train.
Looking at the four-hour chart, the trend is pointing towards further downside. The 50-SMA is trending south, while the MACD is in the bearish territory. The RSI is hovering near the 50-level, suggesting that the commodity prices are consolidating in the near-term.
In conclusion, the symmetrical triangle is limiting the near-term moves of the WTI crude oil prices. The 50-SMA, bearish MACD signals and the steady RSI line suggest further grinding of Oil price. If the WTI crude oil bears keep the reins past $72.50, January’s bottom of $70.27 and the $70.00 round figure should act as the final stops for the buyers before leaving the train. The four-hour chart is pointing towards further downside.
Overall, the WTI crude oil prices are caught in a tug of war between the bulls and the bears. The symmetrical triangle is limiting the near-term moves of the WTI crude oil prices. The 50-SMA, bearish MACD signals and the steady RSI line suggest further grinding of Oil price. The four-hour chart is also pointing towards further downside. Investors should keep an eye on the triangle’s support and resistance levels to gauge the next direction of the WTI crude oil prices.
