WTI Crude oil prices reached fresh highs at $47.35(3050) in accordance with our technical outlook which took strong support around slope line at $46(2950). Although crude oil market reacted as per the pattern indicated yesterday “Inverse Head and shoulder” continued earlier to reach next level at $48.40-49(3070-3100)
I have analyzed the crude oil 4H chart which has taken the formation of “Rising Wedge Pattern”. Prices are currently at the resistance place which is a struggling place at $47.30 has consolidated. The current scenario depicts, if the crude oil prices break below wedge support at $46.60(3000) then the entire direction will turn to negative momentum and reach to $45(2850)
I feel that the market will continue to see upside momentum. A massive short term upward movement can be expected as the 4H crude oil chart indicates that the next resistance will be the upper hurdle place which is notified at $49.70(3200) level.
Gold prices retraced to reach the previous support which has now become resistance line at $1240(28280). As per my technical observation, the 4hour 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.
As per the pattern’s indication, a small profit booking correction has been done as well as the new formation of “Ascending Triangle” which is bullish in nature and continuous to move up to $1253(28600). If it breaks lower triangle slope line, it would reach to $1233-1227 (28000-28100) level which will be an additional support. However, it will take a strong support and pullback upward to further new resistance at $1253(28600)
The overall market indicates a bullish trend reversal that would meet target prices at $1240-$1253(28340-28600) levels.