Analysis of the 1-Hour Crude Oil Chart (WTI)1. Rising Wedge Pattern: A rising wedge has been detected, which is a bearish reversal pattern. This typically signals a potential price breakdown. The wedge resistance aligns near 71.00–72.00, indicating a potential cap.
2. Key Zones: Premium Zone: Around 70.80–71.00, where sellers have shown dominance previously.
Equilibrium: Price around 68.90 marks a fair value where buyers/sellers balanced previously.
Discount Zone: Strong demand zone lies between 66.50–67.00, suggesting significant buying pressure.
3. Moving Averages:
Price is above the 200 EMA, indicating an overall short-term bullish trend, but the rising wedge introduces caution.
4. Support Levels:
Immediate Support: $70.00
Next Support: $68.90 (Equilibrium level)
5. Indicators:
Volume Analysis: Lower volumes during the upward move suggest weakening bullish momentum.
Momentum: If price fails to sustain above $70.80, sellers may take control.
Trade Strategy
1. Short-Term Bearish Setup:
Sell: Near 70.80–71.00 (wedge resistance).
Target:
1st Target: 69.50 (initial drop support).
2nd Target: 68.90 (Equilibrium level).
Stop-Loss: 71.50 (above wedge resistance).
2. Long Setup at Discount Zone:
Buy: Near 67.00 (discount zone support).
Target:
1st Target: 69.50
2nd Target: 70.50
Stop-Loss: 66.52
Key Watchouts
A confirmed break below the wedge at $70.00 will validate a bearish move toward 68.90.
A break above 71.50 would invalidate the bearish setup and signal further upside toward 72.50–73.00.
Trade cautiously around the rising wedge, as breakdowns can be sharp. Use stop-losses to manage risk effectively.
