WTIC West Texas Crude Oil Monthly Chart Sideways Symmetrical Triangles

WTIC, West Texas Intermediate Crude oil, is slip-sliding away due to weaker global demand and the coronavirus. China is freezing much of its economy in place to stop the spread of the virus so they 'don't need no steenkin' oil'. The red candlestick shows price losing the lower rail of the yellow sideways symmetrical triangle. The triangle has steep sides and the first price touch inside the pattern shows a vertical side of about 25 handles.

It is a big deal which way oil resolves out of the triangle. A failure here, from 49-50, price is currently at 50.08, leads to a dire outcome that would target 25. That is a deflationary number with the globe in recession. Oil would have to hold that orange support line at 41-42, if not, 25 would become an extremely real possibility.

On the oil bull side, if price can find 10 bucks and break out higher from 60, oil will target 85. This is a monthly chart and the moving averages are lining out sideways which indicates a very strong sideways trend ongoing in oil.

Sometimes sideways symmetrical triangles will morph into longer skinnier sideways triangles like the light blue lines. Watch price in this 49-50 area to see if it can bounce. If oil loses 48-49, the 44 is on tap next than 41-42 then look out below. Oil price may bounce in here and then move higher pursuing that new light blue triangle pattern going forward; a price move sideways through 50-60.

Keystone is not playing oil. A failure of 47-48 would be a short with oil likely losing another 3 or 4 bucks. If price bounces and moves above 52-53, oil will likely want to move up towards 60. 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 7:05 PM EST: WTIC loses -1.5% to 49.57, a 49-handle, so the test of that 49-50 area continues. Bring up a daily chart of WTIC. Price is basically at a matching low with positive divergence showing on the indicators. Oil is a buy if you are a nimble trader in the daily time frame. Any lower number in WTIC can be bot expecting a positive divergence bounce on the daily basis (several days of upside ahead). Look at OIS it is all set up for a nice long on the daily basis. Keystone will buy some for the possie d bounce coming in the daily time frame. Other oil plays should all be set up similarly.