An important week for the crude oil price started with the OPEC meeting and followed by the OPEC+ round. Some divergences regarding the supply level for the next year existed, creating a consolidation on the crude oil price.
The WTI is seen bouncing from dynamic support – a bullish outcome. However, it was rejected twice so far from a horizontal area – a bearish development. Is a double top in place?
The OPEC+ meeting was supposed to take place on Tuesday, December 1st. However, it was delayed due to oil ministers’ desire for consultation with their governments. The meeting is scheduled to start today at 02:00 PM Vienna, Austria time, and will likely generate fluctuations on the oil markets.
The rejection from the horizontal area may act both as a bullish and a bearish outcome. Bulls would want to buy a break above it, as it suggests an ascending triangle broke higher. When going long, they need a stop-loss at the rising blue trendline and a take profit twice as big.
Going short on the double top scenario needs a break below the rising blue trendline, with a stop at the horizontal area and a take profit level ideally set at $40 – a pivotal area that the price respected for much of 2020.
