WTI Crude Holds Support, Triangle Breakout in Play
WTI crude bounced from support near $78.56, reclaimed the 50-day moving average, and sits inside a symmetrical triangle. A breakout above $88.90 targets $94.38.
Alpha Score of 67 reflects moderate overall profile with strong momentum, strong value, weak quality, moderate sentiment.
WTI crude oil found support near $78.56 this week, a level that lined up with the 20-day moving average and a 61.8% Fibonacci retracement. The bounce carried prices to a session high of $86.53 on Thursday, the highest in four days.
The close above the 50-day moving average on Wednesday marked the first time in several sessions that crude held above that line. Traders said the support at the 20-day moving average and the reclaim of the 50-day suggest near-term momentum is shifting.
The next upside target is near $88.90, a level that acted as resistance after a bearish pattern earlier this year. Above that, the 100-day moving average sits at $91.13. The move could stall there, fitting the symmetrical triangle pattern that has been forming since early May.
The triangle narrows the trading range. A breakout above the upper boundary would target the recent swing high at $94.38. A move below the lower edge would put the $78.56 support back in play.
The rally also supported commodity currencies, with the Canadian dollar gaining ground against the greenback during the session.
For related reading on energy markets, see Natural Gas: 207K Shorts Face Heat Test as Front-Month Holds Support.
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