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Crude Oil Trades within a Triangle Formation

crude, oil, WTI

Looking at the headline West Texas Intermediate (WTI) crude oil futures contract and above four (4) hour MT 4 chart, the black gold has risen to $43.20 per ounce during the Asian trade hours.

The WTI crude contract shows a short term triangle chart formation as well as price action trading above the two hundred (200) day moving average (DMA). The relative strength index (RSI) is also signaling neutral as traders are looking for a catalyst before taking large positions.

The economic calendar is all about the start of labor data that leads up to Friday’s non-farm payroll (NFP). Today the private ADP monthly payroll change will be released. The Federal Reserve Board will also publish their Beige Book.

The U.S. is also releasing weekly crude inventory levels. Canada is releasing quarterly labor productivity data. Across the Pond, in the European Union, Germany will publish monthly retail sales data and Spain will release their monthly employment change. The Eurozone will release their monthly producer price index (PPI).

The United Kingdom is releasing housing data including their monthly Nationwide housing price index (HPI). The UK is releasing monthly BRC shop price index (annual).

Daily WTI Crude Oil Technical Analysis                                                           

Looking at the above WTI crude oil chart, the first upside barrier comes into play at the triangle resistance level in play at $43.63 per barrel. A daily close above this level challenges the July monthly high priced point at $43.85 per barrel. The next upside barrier comes into play at $44 per barrel.

On the flip side, the first downside barrier to monitor lines up at the triangle support. This layer of technical support lines up at $42.80 per barrel. Also in this area is a five week old rising trend line in play at $42.60 per barrel.

A daily close below the trend line opens the door to challenge the 200 day moving average lining up at $42.10 per barrel. The next layer of technical support lines up at $41 per barrel.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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