WTI Crude Oil prices bounce back from low as the dangling appearance has ended and given rise to the formation of “Broadening top pattern”. According to this pattern, the current down trend may reverse to reach a new high of the broadening Top resistance line at $48.40.(3110) As per the pattern, the measured target is derived by subtracting the height of the pattern from the eventual breakout level. This will be a hurdle place and selling pressure will be generated. It would be vital to safe book your profit. Support is seen at lower.
The moving average is one of the most reliable cross over where the 100-day moving average of gold prices crosses above the 50-day moving average, as seen in the chart. A medium-term trend is in place which will be an uptrend as it continues to reach $1300(30000)
Based on the previous technical observation, the daily chart has taken the formation of “Falling wedge pattern”. In this pattern, prices broke out slope resistance line at 1227(28000) closing a daily candle which affirms that the market scenario has turned from negative to positive momentum.
Pattern exhibits bullish nature which could move up to $1260(28600). This will be a little struggling area. As per my inference, gold prices will struggle at $1260. Trader has to be vigilantly watching at $1250(28480) as this would be today’s support. Once it breaks below, then profit booking correction will offer a pull back to $1246- $1240(28400028350) level which is a short term support.
However, if it can break and close above, then further rally can be expected towards $1275-$1300(29100-30000)