FxWirePro: WTI bulls stand out at pivot points creeping-up through rising channel, Break-out of symmetric triangle resistance to drag prolonged consolidation

Chart pattern formed- Rising channel on daily terms and Symmetric triangle resistance break-out on monthly terms.

Crude oil prices are almost unchanged since the end of last week, despite moving in a $4/bbl range following announcement by Ineos of the closure of the Forties Pipeline System on 11 December

While WTI crude minor trend spikes through rising channel ever since bulls sense support at channel baseline, bulls break-out symmetric triangle resistance but struggles for momentum.

Major supports are observed at $57.18 and $55.77 levels, and bulls have managed to test these major supports before bouncing back.

While the stiff resistance is seen at $57.90 in minor trend and $60.10 levels in the major trend. Failure swings are observed at the same juncture couple of times in the past.

Aggressive bulls are now lingering on these pivot levels of $57.90 – $60.10.

There has been a tight tug of war between bulls and bears, consequently, today’s trend has been drifting into the narrow range.

While both leading oscillators have been indecisive currently, RSI is sensing a sort of strength at 45 levels and shown upward convergence to the uptrend on monthly terms.

Bulls in the consolidation phase have managed to break-out the symmetric triangle resistance, but one more stiff resistance at 60.10 is closely watched.

The sustenance above EMAs with bullish MACD and EMA will more likely to break out these levels.

Both leading as well as lagging indicators on this timeframe converge to ongoing bullish sentiments.

Trade tips:

Intraday traders are likely to sense more volatilities in the US sessions ahead of EIA’s inventory check which is due to be announced.

It is wise to use dips to deploy long hedges using forward contracts, we advocate adding longs in mid-month futures with a view to arresting upside risks.