WTI Oil and the Ascending Triangle's Promise
12 September 2023
For the past few months, the energy sector has been witnessing remarkable movements, and the WTI oil stands out prominently in this regard. The price action in July was particularly noteworthy, with the momentum extending into August, culminating on long-term highs.
Delving into September's chart, a distinctive ascending triangle pattern emerges, delineated by orange lines. For those unfamiliar with this technical pattern, it’s characterized by a flat top (a horizontal resistance) and a steadily rising bottom (dynamic support). Notably, in the context of an upswing, such a pattern is generally seen as a bullish continuation signal. This means that the price is more likely to break through the resistance and surge further.
Given the existing momentum and the formation of this bullish pattern, the outlook for WTI oil remains optimistic. If we witness a breakout above the triangle's resistance, it would reinforce the buy signal, with a subsequent target set at $93 per barrel. This target is highlighted in blue on the chart, marking a potential next destination for the price.