FxWirePro: WTI crude bulls in consolidation phase take support at ascending triangle baseline, both leading and lagging indicators to substantiate

WTI crude prices are inching higher towards 5-weeks highs at $52.91 levels, bulls today have managed to extend last week’s rallies that were halted at $52.27 a barrel.

Well, as stated in our previous post, WTI crude price has been spiking higher through ascending triangle (monthly chart) showing momentum in rallies after the test of support at baseline of the bullish triangle pattern. Ever since the formation of dragonfly doji pattern, the consolidation phase in the major trend is sensing strength in upswings.

The current prices of WTI crude are well above EMAs and DMAs but restrained below resistance of ascending triangle, for now, the price band has been stuck in the range of $50 and $54.50 levels, the break above 54.50 levels to evidence more bullish environment towards $60 levels.

RSI evidences the upward convergence to the price spikes. While stochastic curves have been indecisive but bullish bias.

To substantiate this bullish stance, weekly MACD signals upswings to extend further.

On daily plotting, we’ve observed bullish DMA crossover to signal the extension of the uptrend.

Hence, we don’t encourage long-term short build ups; instead, we encourage longs in WTI crude of near-month expiries for targets of 54.48 levels with strict stop loss of 51.33 levels, thereby, the trade carries attractive risk reward ratio.