Will we see a bounce or a break for WTI crude oil?
The commodity is testing its triangle resistance once more!
As you can see from the 4-hour chart below, price made lower highs and found support around $67 per barrel, creating a descending triangle pattern.
WTI Crude Oil (USOIL): 4-hour
WTI Crude Oil (USOIL) 4-hour Chart by TV
Crude oil is currently hanging out at the top of the chart formation, still deciding where to head next.
Technical indicators appear to be pointing to another dip from here, as the 100 SMA is below the 200 SMA to hint that the path of least resistance is to the downside.At the same time, these moving averages are right around the triangle resistance, adding to its strength as a ceiling. Stochastic appears ready to move back down as well, so price could follow suit.
Then again, the oscillator might have some room to climb before actually reflecting exhaustion among buyers, so there could be enough bullish momentum to spur a break higher.
A move past the triangle top around $71 per barrel could set off a rally that’s the same height as the chart pattern, which spans $67 to $77 per barrel.
Commodity traders might be holding out for any major updates from this week’s OPEC meetings, as well as possible surprises from the FOMC minutes and NFP release, so keep an eye out for those catalysts!