Ascending triangle pattern is seen. The pattern is broken at top and we can expect the price to travel till $27.50 ranges.
This could be a temporary push; after testing the $27.50 ranges, price can fall further - either till previous low or even below. Lets wait and see.
CrudeOil Analysis based on trend analysis.
After the fall from the level of 59, seems to have some bounce from the low level of 51. Now the trend is not bullish nor strong bearish based on the current level of holding.
On my analysis, may have good entry at the lower level of 54 with the SL of 52.50 and the target of 56 to 56.50 level. But...
Crude Oil weekly chart study.
We see that the Fibonacci levels as well as the pitchfork boundary coincides and shows a strong resistance and a possible price reversal zone. RSI divergence also substantiates our bias. We will confirm the beginning of a new downtrend only after the wedge breakdown.
NYMEX:CL1! CL Near "D" zone of AB=CD pattern. 161.8% Extension of Fibonacci is @ $ 55+. Watching price action closely for any short trade. Next resistance (If breaks this level) @ $58. First immediate target would be $ 50 (i.e "B" level), If price action says to short.
Although i am having a shorter side bias in crude oil BUT .....
A word of caution - Trade with a strict stop loss, at least till it confirms the move by breaking the uptrending line on daily closing basis.
Let It Break decisively.
Till then you can take advantages of intra-day short ranges.
But do that with strict risk management.
Finally the pattern at present looks Bullish, BUT it can go either way.
Because on the flip side of it - COT reports are Bearish, open interest is at record high and Commercials are record short(more than they were at 2014 drop from...