The WTI Crude Oil market initially rallied during the trading session on Wednesday, reaching the top of the consolidation triangle that we have been trading in. We are still within it, and I think at this point it’s likely to see a lot of volatility in the short term. If we can break down below the $50 level, then I think the market continues to go much lower.
I will say that we have been selling rallies every time we get them on short-term charts, and that does cause a little bit of concern for the value of crude oil. If we break down below the $50 handle, I anticipate that we will go looking towards the $45 level. The alternate scenario is that we can break above the downtrend line of the wedge, and then perhaps go to the $55 level, possibly the $57.50 level after that.
SOURCE: DAILY FOREX