Market Analytics and Considerations
Key notes
Within a Falling Wedge pattern, crude oil prices are still declining.
Technical Analysis of Crude Oil
A Sinking Wedge graph pattern is visible in the current trading of crude oil prices. The latter is a bullish engulfing formation, although prices must breach beyond it for the gains to start to take lead roles. WTI is still solidifying below inside the confines of the Descending Wedge, so the focus is still lower for the time being.
Source: TradingView
The wedge base and the area between 71.13 and 70.10 appear to be crucial supports. If this band were to be violated, the downturn might restart, with the potential to overcome to the low points from May 2021, which are positioned between 61.69 as well as 65.60. If not, breaching through the chart pattern would present an increasingly bullish scenario. The 100-day SMA can then be tested as a result of it. The latter did so in November, refocusing attention on the decline.
