Feeling gutsy enough to catch a breakout?
Or would you rather play it safe with a trend?
Either way, I’ve got you covered with these chart setups on WTI crude oil and NZD/CHF!
This pair has been on a steady downtrend for a while now, cruising inside a descending channel that’s been holding for more than a month already.
Another test of the channel resistance seems to be in the works, and technical indicators are hinting that the ceiling near the 61.8% Fib might hold again.For one, the 100 SMA is below the 200 SMA to confirm that the path of least resistance is to the downside. The 200 SMA dynamic inflection point is even close to the channel top at the .6400 major psychological mark, adding to its strength as resistance.
Also, Stochastic has already made it to the overbought zone to reflect exhaustion among buyers. Once it heads south, more sellers could join in and allow the selloff to resume.
WTI Crude Oil: 4-hour
Heads up, commodity traders!
Crude oil just busted through its symmetrical triangle top. Blink and you might miss it!This bullish breakout suggests that a rally of the same height as the triangle formation might be in order, possibly sending the commodity price higher by roughly $15.
Moving averages point to a likely uptrend, as the 100 SMA is above the 200 SMA. However, Stochastic looks ready to move down from the overbought area to signal a return in selling pressure.
This might simply spur a quick pullback to the broken triangle resistance around the $105 per barrel mark, though, encouraging more buyers to hop in at better prices.