Commodity
by Alex Davies on December 17, 2018

WTI Oil Analysis – where does the price go from here?

Oil prices have fallen under a lot of scrutiny lately due to the political tension that surrounds the issue. We saw a great selling opportunity ten days ago right before the OPEC meeting that was supposed to determine the future of oil prices. Disappointing expectations, the meeting didn’t end in any drastic change in the price. On the contrary, the price continued to follow the logic of technical analysis. Ten days ago we saw a head and shoulders pattern as well as the test of a long-term downtrend line, both of which reinforced the negative sentiment.

WTI Oil Analysis - symmetric triangle pattern could end in a breakout

As expected, there was a breakout of the support line and although it didn’t lead to a massive drop, it did follow technical analysis quite well. Currently, there is a sideways pattern in the price movement as it traces a symmetric triangle pattern shown on the graph above with red lines. Today, the price came closer to the support and there are chances of a bearish breakout. If it does indeed close below the lower line of the symmetric triangle, it could trigger a sell signal.

By Alex Davies

Alex Davies is a long-time trader with a background in statistical analysis. Davies has worked as a financial analyst since 2014 and has been writing technical analyses for various publications since 2015. Davies writes on different financial instruments including stocks, cryptocurrencies and currency pairs.

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