A third retest of key support on the US Crude Oil futures chart may have signaled at least a temporary bottom for the market. Friday's sharp reversal from the swing low near $95.00 per barrel confirmed that buyers are still present at this level, with potential for an upside rally increasing with the strong close.
The move occurred near the apex of a well-defined Descending Triangle chart pattern, detected by Autochartist and illustrated here on the 240-minute time interval.
The chart analysis reveals the trend line support holding the price steady above the $95.00 level as the Descending Triangle chart pattern narrows to a completion during Friday's session. The brief push back above $97.00 sets the stage for a technical breakout with a commensurate upside forecast to complete the pattern.
This creates a long entry point on the chart with only a move outside of this small range needed for identifying a directional trend shift. A failure of the $95 level would negate the bullish outlook and set up a reversal pattern for a move lower, making this a likely place for a stop-loss after buying an upside breakout, or short entry on a confirmed failure. Autochartist will likely generate the upside forecast is a confirmation of the breakout confirms with strength in Monday's session.
For further information on this and other Autochartist products, visit our website at www.autochartist.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.