WTI – Very Healthy Up Trend

Oil is coming back into the spotlight as recently, the commodity keeps making the new long-term highs. The uptrend on the WTI is remarkable from the technical point of view. The price is climbing up like on the staircase, making very nice trend continuation patterns.

We already have four in raw here and what is super interesting is that the patterns are getting smaller and smaller. First one, the wedge, lasted four weeks (mid of February till mid of March), the second one, flag, lasted two weeks (end of March till the beginning of April). The third one was the wedge again and lasted one week (mid of April) and the last one, current, is the flag, which is still small and was born on the last Thursday.

The breakout of the upper line of this formation should bring us a buy signal. Positive sentiment will be denied, once the price will come back below the 66.4 USD/bbl (upper green), which is less likely to happen at the moment. At the end of the European session, the price breaks the short-term support on the 67,5 USD/bbl but it does not change much in our analysis as this is not a major area of concern and we still remain inside of the flag.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis