Oil Poised for a Breakout

Hey there, Traders.

It’s been a while since we’ve seen some a decent medium-term opportunity arise for USOIL, but the chart below is beginning to look very interesting.

USOIL

We can see that price has been respecting our downward trendline since late Jan this year, and we can also see that over the past month our horizontal support levels have also been respected and we’ve got the makings of a descending triangle. Now, this could break out either direction any day now, but what would really make this appealing and higher probability is if we see price continue to tighten up towards the apex of the triangle.

Price is currently sitting at ST support, however it is only a minor support level and am not confident it will hold at this point and we’ll see another test of our stronger support area shown, however, the market being the market loves proving people wrong, so let’s see.

Another one to put on your watchlist, and as always, watch your risk and trade with the probability.

 

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Source: Vantage FX Blog