Do you believe that crude oil will soon break free of its consolidation pattern?
Or will the descending triangle support experience another slump?
Since last month, WTI crude oil has been forming lower highs and finding support near the $67 per barrel level, forming a triangle chart pattern.
The fact that price is currently testing the triangle resistance again and that the prior week's higher lows indicate that bullish pressure is intensifying.
In that situation, an upward breakout may occur and trigger a rally that is equal in height to the chart pattern.
However, technical indicators appear to be conflicting.
Stochastic is indicating that buyers are anxious to return and may be able to sustain an uptrend by turning higher.
The 200 SMA is above the 100 SMA, indicating that the path of least resistance is downward and that there is a significant likelihood that crude oil will fall back to the triangle's base.
Remember that lower expectations for Chinese demand are now lowering investors' prognosis for commodities used in the production of energy, including gasoline, as well as their level of risk tolerance.
To acquire more hints, you should keep an eye out for candlestick patterns near the $71-72 per barrel resistance.
