Crude prices in the 4H chart have formed “Ascending triangle”. The market is ready to break the triangle which is close to the crucial place and as per pattern, it wouldn’t take much longer. Consolidation is almost over and it’s likely to move towards $55 (3500). The Current market’s momentum is strong bullish and is expected towards 52(3333) level soon.
Prices sustained above $50.75 (3185) on the weekly & daily chart which indicates bullish strength. A break above and close of the four-hour candle, could lead to high buying pressure. Trailing Support holds at $50(3240). A break below support line could lead the selling pressure towards 49.20 (3160) level.
The crude oil market trend gives us the impression that the lower highs and lower lows are constantly repeated. Since Feb 2017, it’s the first-time crude oil prices break through lower high which is an indication of trend reversal from negative to positive momentum towards 52-55(3333-3500).
Indicator: On the daily chart, the 50-day moving average crossed over 100 day moving average at $47.40 (3050), indicating bullish momentum.
In the view of price action, a 50-day moving average is likely to crossover 200 day moving average towards $55(3500).
Pattern Analysis: Crude oil daily chart has formed “Symmetrical triangle pattern”. Prices have broken the resistance line at $49.50(3175) and the expected short-term target has reached at $ 51(3300). Currently prices hold above the 200 day Moving average line which is a positive indication towards $52-55(3350-3500). Support holds at $50(3240).
To Read Complete Report & Disclaimer Click Here