Crude oil continues to oscillate about its crucial weekly moving averages. The oscillations are taking place in between two converging trend-lines. In terms of the price pattern, oil has formed a large distribution triangle, and has moved up to complete the last leg of the pattern.
It has crossed the upper end of the pattern by a small margin, thus making a throw over. After the throw over, the oil in the last week has formed a bearish outside bar, marking the beginning of the next leg down. Last week’s high of $99.01 will now act as a reversal level for the bearish view. Oil is expected to fall towards $85.61-$77.28.
It has crossed the upper end of the pattern by a small margin, thus making a throw over. After the throw over, the oil in the last week has formed a bearish outside bar, marking the beginning of the next leg down. Last week’s high of $99.01 will now act as a reversal level for the bearish view. Oil is expected to fall towards $85.61-$77.28.