- Summary:
- While crude oil prices ended Monday's trading flat, technicals on the 15-minute chart hints that we could soon see the commodity trade above $58.
Crude oil prices were flat in Monday’s trading. WTI crude fell to an intraday low of $57.11 mid-day and found enough bids to finish the day with a marginal 3-cent loss at $57.78.
Market participants continued to await on updates surrounding the US-China trade negotiations. The latest from this morning was news that the two countries have come to a consensus in dealing with issues. While risk currencies spiked higher at the wake of reports, crude oil prices remained flat. WTI crude is trading at $57.90 as of this writing.
Crude Oil Price Outlook
Crude oil price is still trading around its two-month highs. The 4-hour chart shows that the commodity pulled all the way back to the 50% Fib level (drawing from the low of November 20 to the high of November 22).A closer look at the 15-minute chart reveals that buyers could be getting ready for a rally towards the top of the rising channel I pointed out yesterday. Crude oil prices have made lower lows followed by a higher low. This pattern is consistent with a head and shoulders chart pattern which is treated as a bullish indicator in forex trading. A strong bullish candlestick closing above yesterday’s high at $58.03 could mean that crude oil prices may soon reach $58.61 which is this month’s highs.
On the other hand, a close below yesterday’s low at $57.12 will invalidated the chart pattern. Crude oil prices may then drop to their November 21 lows at $56.48.Download our latest quarterly market outlook for our longer-term trade ideas.