WTI Crude Oil

1/ Weekly Chart

WTI crude oil is on the verge of adopting a much more bearish outlook for the coming months after breaking lower out of a pennant pattern and a subsequent throwback that has held the pennant’s lower trend line so far.?

The weekly continuation chart broke lower out of a large pennant pattern on September 3 that began to form in early May 2023. The subsequent decline stalled at $65.27, which was in line with the 38 percent retracement of the rise from crude oil’s brief dip to the April 2020 swing low of $-40.32. This level at $65.3 has been resilient on the weekly chart since March of 2023.

A weekly long-legged doji formed and was completed by a close above the midpoint of the week ended September 6. This bullish candlestick pattern and a weekly oversold Stochastic oscillator warned that a reversal was taking place and that a failed breakout of the pennant had occurred.??

However, the move up has held the lower trend line of the pennant and the pullback from the $72.49 swing high suggests that the move up...

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