Published 11th September 2019
The triangle counts as complete and WTI attempts a breakout on the upside. The next few days will probably reveal crude’s true intentions.
A small drop from the September 10th (yesterday) recovery high counts best as a small-degree impulse. Some form of follow-through is likely and leads the nearest future back inside the triangle. The swing should be strong and interpreted as the pullback after a fake breakout.
That would be the most apparent path if a complete triangle pattern played out as depicted in today’s chart.
Downside action should start with a swift break of 57. The subsequent pullback must not be able to cross above the downward sloping solid red triangle S/R. A break below 55 is the next milestone on the path towards 52. A sustained break below 52 signals a high-probability setup that a primary degree triangle completes the B-wave of a zigzag.
Sentiment remains well inside neutral territory. Some technical traders called a breakout during the past few days and positioned accordingly. We remain with our negative outlook and expect them to be on the wrong track. Crude is likely to target below the December 2018 lows during the next few weeks.
The analysis above is a historical abstract of our WTI Crude Premium Analysis. Subscribers can access multiple timeframes, which are not displayed on this page.