Oil breaches a positive pattern's ceiling - Technical Analysis - 29-01-2016
Crude oil prices rose in the intraday levels, succeeding in breaching the neck line of that positive pattern that formed previously in the short term, the Inverse Head and Shoulders pattern, which is contradictory to the main downward trend as shown in the attached chart, with ongoing positive support from the SMA50, along with an influx of positive signals from relative power indicators like the Stochastic as shown below the attached chart.
Therefore we expect more gains to come for the crude in the intraday levels, targeting the resistance of 35.35 as a first obstacle to tackle, and thereafter targeting the resistance of 37.75 as a price target for that forming technical pattern.
Trend
Bullish