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Autochartist - Daily Commodities Update: US Crude Oil

US Crude Oil futures are holding steady inside of an expansive Ascending Triangle chart pattern, borrowing near term strength from a modest recovery in the stock market. The succession of higher swing lows over the last several trading sessions indicates a possible firming of the market as it moves towards resistance at the $91.00 per barrel level.

Thursday's price action was confined to a narrow range as the price moved towards the apex of the Ascending Triangle. As the pattern narrows to bring the support and resistance levels towards convergence, a directional breakout is likely to occur soon.

For a successful upside rally, crude will need to push above $91.00 a barrel on solid momentum. If this occurs, it will clear the recent trading range and set the stage for a move back towards long term resistance at the pivotal $100 per barrel level.

A technical failure of the rising trend line support near $87.80 would signal a potential move lower out of the pattern, which may result in a resumption of sideways trade between $80 and $85 per barrel for the time being.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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