WTIC Crude Oil Weekly Chart Sideways Symmetrical Triangle

WTIC crude oil is 89.51 moving lower today in the commodity whipping taking place after weak China GDP data.  The long-term crude oil sideways symmetrical triangle lives on. The indicators continue to favor the sideways vibe. Looks like oil wants to come down to look at the lower rail at 88-ish.  The vertical side of the triangle is a huge 40 handles. When oil does choose a side to break out, the ramifications will be serious. On the top side, a breakout at 95-ish would target 135. A drop out the bottom of the triangle from 88 would target 48. With commodities and volatility, the targets for triangle and other patterns have to be taken with a grain of salt. The direction is far more important. Suffice it to say, a break out above represents a stronger global economy, stronger China, a move towards inflation and higher yields on bonds, and higher stock market. A break out below represents a weaker global economy, weaker China, a move towards deflation (Keystone's Inflation-Deflation Indicator says we are currently in deflation), and a lower stock market.

Watch the 50% levels for RSI, stochastics and money flow for hints on direction, also the MACD zero line. The selling volume is strong over the last couple weeks. Watch to see if 88-ish, holds, or not. Obviously, a failure at 88 would verify trouble for the global economy. Perhaps the weakness in copper, commodities and now oil, will be given further respect in markets moving forward. Over the last month, these bellwethers are ignored since traders are simply buying stocks without worry due to the Fed and BOJ easing programs. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

Note Added 3:55 PM:  A crazy day for markets. Crude oil is at 88.19 sitting on the bottom rail of the triangle.