A third retest of key support on the US Crude Oil futures chart may have signaled at least a temporary bottom for the market. Friday's sharp reversal from the swing low near $95.00 per barrel confirmed that buyers are still present at this level, with potential for an upside rally increasing with the strong close.
The move occurred near the apex of a well-defined Descending Triangle chart pattern, detected by Autochartist and illustrated here on the 240-minute time interval.
The chart analysis reveals the trend line support holding the price steady above the $95.00 level as the Descending Triangle chart pattern narrows to a completion during Friday's session. The brief push back above $97.00 sets the stage for a technical breakout with a commensurate upside forecast to complete the pattern.
This creates a long entry point on the chart with only a move outside of this small range needed for identifying a directional trend shift. A failure of the $95 level would negate the bullish outlook and set up a reversal pattern for a move lower, making this a likely place for a stop-loss after buying an upside breakout, or short entry on a confirmed failure. Autochartist will likely generate the upside forecast is a confirmation of the breakout confirms with strength in Monday's session.
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