Inverse Head And Shoulders Spotted! Crude Oil Prices About to Surge Above $58.00?

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Written By: Angeline Feliciano
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    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.

Written By: Angeline Feliciano

Angeline Feliciano has been trading Forex for over ten years. She has invaluable experience working in FX education companies like BabyPips.com and Learn to Trade as a trader, currency analyst, trading coach, and presenter. Aside from these roles, she has also created intensive educational content on fundamental analysis which is heavily sought after by retail traders. She has taught hundreds of people how to trade the FX market in the Philippines and in Australia. When she is not trading, you can find her in the gym lifting weights.

Published by
Written By: Angeline Feliciano