Technical Analysis – WTIOIL false breakout, traded back into its triangle (27 Sept 2019)

Oct 11,2019

Technical
Analysis – WTIOIL false breakout, traded back into its triangle

By Oliver
Garcia

Twitter:
@ogfxtrader

As mentioned in last week report, oil’s price action has been
trading within a symmetrical triangle formation and only after the attack on Abqaiq
in Saudi Arabia, price made a false break-out from both patterns previously
detailed (triangle and uptrend channel), investor expected that after the
break-out, price reversal would respect that new support for an excellent
uptrend continuation.

However, the price did not support and dropped back within the
patterns. Now with MACD showing a bearishness and a sell signal cross
altogether with the slop on the moving average, the oil price is expected to
keep it bearishness until testing channel support or triangle support as
indicated in the chart analysis.

From the fundamental side, even with the remaining questions marks
over Saudi Arabia’s ability to repair Abqaiq and Washington and Riyadh
following steps to be taken after the attack, concerning on oversupply remain
in the market. Furthermore, EIA last report where 2.4 million barrels where
build-up create a further dampening sentiment. Nonetheless, trade war overtures
with a series of back-and-forth goodwill gestures between Washington and
Beijing would keep boosting the market sentiment helping the oil price to no
break-down and continue its mild uptrend behavior.

End, this is the final article

Next article : GOLD WEEKLY ANALYSIS – GOLD MARKET WAITNG FOR CLUES

Technical Analysis – WTIOIL false breakout, traded back into its triangle (27 Sept 2019)

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