Crude Oil Prices Consolidate After Initial Brexit Decline
- WTI Crude Oil Price Declines to a New Weekly Low After UK Vote
- Prices are Now Consolidating in a Symmetrical Triangle
- A Decline in Crude Oil Price Under $46.69 May Signal a Resumption of the Trend
WTI Crude Oil (CFD: US OIL) prices are currently consolidating after initially dropping to new weekly lows at $46.69. This extreme move in Crude Oil price was directly related to the US Dollar rally that occurred immediately after the release of yesterday’s UK vote. Now that much of the volatility of yesterday’s event has subsided, traders should continue to monitor support and resistance values to help determine the markets next move.
Looking for additional trade ideas for Crude Oil and Commodities? Check out our Trading Guide
WTI Crude Oil Daily Chart with Key Resistance
(Created using Marketscope 2.0)
Above we can clearly see WTI Crude Oil price consolidating in a symmetrical triangle. This charting pattern has been formed by first connecting today’s low at $46.69 with the most recent swing low at $47.36 to form an ascending line of support.
Conversely, resistance has been formed by connecting a series of descending candle wicks. This includes this morning’s high at $48.42, and the most recent swing high at $48.15. As prices consolidate, traders may first elect to monito these points to specifically target Crude Oil prices next breakout.
The Grid Sight Index
Traders looking to monitor short term changes in momentum may use the Grid Sight Index (GSI). This trading tool is designed to review millions of historical pricing points in real time. Then it studies those events to show you how often the trend continued or reversed in the past. This information can be extremely helpful for traders looking to pinpoint a market turn or in conjuncture with a breakout based strategy.
For those that are unfamiliar with the Grid Sight Index, you can review our tutorial and find real time updated data HERE.
If you are new to trading with SSI, view our training video and download the free indicator HERE.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.