Volatility in the world crude oil prices (WTI crude oil) in the past couple of months has caused some ruckus in the other financial markets. Moving forward, where will WTI crude oil in the days to come?
The price of WTI crude oil has risen to a high of $114.81 last May 2, 2011 after it broke out from a right-angled descending broadening triangle pattern. However, it has since slipped to form a potential head and shoulders. Presently, WTI crude oil is sitting smack at its uptrend line and the previous triangle’s resistance. With the stochastics in the oversold area and the supports that are keeping it afloat, its possible for it to rebound in the days to come. However, a breakdown from the head and shoulders pattern could send it to its downside target (gauged by projecting the height of the head and shoulders pattern from the point of potential breakdown) of around $72.50.
The following days or weeks should be interesting as this would set the direction of crude oil prices. Remember to keep an eye or two on this commodity.