Will WTI Crude Oil price continue to rise?
This article is originally referred from Orbex Technical Analysis.
WTI Crude oil prices continued to post strong gains as price action broke out to the upside following the strong breakout from the bullish flag pattern that signals continuation.
Price action is seen trading just below the final minimum target of $65.03.
A rally to this level will signal the completion of the bullish momentum with the rally likely to take a breather.
However, the strong gains have come with little to no correction in price action. This suggests that the downside risks for a correction in oil prices remain.
Technical Analysis on WTI Oil
Previously, we expected to see oil prices post a decline to the $59.00 level where support is likely to be tested.
However, the breakout from this level saw oil prices maintaining the bullish momentum. Following the breakout, the 4-hour chart showed a minor bullish flag pattern as well.
This suggested that the upside momentum would be maintained.
While the minor bullish flag’s minimum target has been achieved, we expect oil prices to continue towards the $65.00 level which will mark the 161.8% extension following the bullish pennant’s breakout.
The strong rally is expected to stall at this level.
Following some consolidation near the $65.00 handle, oil prices are likely to post a correction unless prices manages to breakout above the $65.00 level as well.
To the downside, initial support is seen at $61.00 followed by a test towards the $59.00 level.
Despite the correction, we expect oil prices to continue maintaining the rally with the eventual target towards the $70.00 level.
Original Source: Orbex Technical Analysis