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Crude oil prices are sitting right at the very bottom of a descending triangle!

Will it bounce or break this time?

Here are the levels I’m watching on the 4-hour chart.

WTI Crude Oil (USOIL): 4-hour

WTI Crude Oil (USOIL) 4-hour Chart

WTI Crude Oil (USOIL) 4-hour Chart

Crude oil bears just won’t let up, as the commodity is attempting yet another break below its descending triangle pattern.

Will support at the $91 per barrel area give way this time?

Technical indicators are giving mixed signals, so it’s hard to tell at this point. The 100 SMA is still below the 200 SMA to hint that the floor is more likely to give way than to hold, but Stochastic is hanging out at the oversold region to reflect seller exhaustion.

Turning higher would mean that oil bulls might charge again, possibly taking prices back up to the resistance near the $95 per barrel area.

Meanwhile, fundamental factors seem to be favoring more losses, especially since the latest round of inventory data showed a buildup. The EIA reported an increase of 4.5 million barrels in stockpiles instead of the projected draw of 1.5 million barrels, suggesting that demand has slowed.

Add that to the backdrop of a technical recession in the U.S. economy (at least according to the Q2 advance GDP report) and we’ve got weaker investor optimism and potentially slower business activity.

The upcoming U.S. jobs release might even bring another round of bearish vibes if the actual figure falls short of consensus. Leading indicators like the ISM surveys reported back-to-back contractions in employment, so it’s not lookin’ too good for the NFP.

Just stay on the lookout for a bearish breakout since it could spur a selloff that’s the same height as the triangle!

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