Oil hints at a positive pattern - Technical Analysis - 27-01-2016
Crude oil prices rose in the intraday levels, trespassing the SMA50, and getting rid of its negative pressure, and benefiting from its positive support. The crude then hinted at forming a positive technical pattern contradictory to the main downward trend, the Inverse Head and Shoulders pattern, as shown in the attached chart, but we'd have to wait for a breach of the neck line of that pattern to confirm it, which would play out in the coming trading.
Therefore we expect more gains to come for the crude, as long as it breaches the neck line of that forming technical pattern, targeting thereafter the resistance of 35.35.
Trend
Bullish