Join Dstockmarket's Community - Daily Market Analysis, Individual Stock Analysis.
The current daily uptrend and a reverse head and shoulders in the monthly chart of oil might just help it to reach $80 in 2018. For the past few months, oil has exhibited many ascending triangles and started a new uptrend that brought it from $47 to $60.
The daily chart of oil above shows that oil bottomed around July 2017. It formed a classic ascending triangle bottom. It also formed 2 more ascending triangles which helped to absorb supply from the overhead resistance in the past. Oil was making higher highs and higher lows which are characteristics of an uptrend.
It is now above its rising 20 MA, 50 MA and 200 MA. All this points to a strong daily uptrend in oil prices and therefore, traders can expect more upside in oil prices. Recently it made another bullish chart pattern by breaking above another ascending triangle.
The chart above is the monthly chart of oil. The next area of resistance in the monthly chart will be around $80. The monthly chart hints of a potential reverse head and shoulders bullish reversal pattern. If oil prices continues its daily uptrend and breaks above $63, it is very likely that oil could go up to $80 in 2018.
Charts with the Freestockcharts.com label are courtesy of Freestockcharts.com
Charts with the investing.com logo are courtesy of Investing.com powered by Trading View
Jul 13, 20 07:44 AM
Here is a technical outlook for the US stock market.
Jul 13, 20 07:44 AM
Here is a technical outlook for the KLCI.
Jun 29, 20 08:04 AM
Technical analysis of the KLCI for the month of June 2020. What is likely to happen? Read here.
Jun 29, 20 08:03 AM
Well, sell in May did not materialize for the S&P 500 but the market continues to chugg higher. What is in store for us this month?
Apr 30, 20 07:49 AM
What is the stock market likely to do from this impact of the Coronavirus? Will it continue to fall or a bottom is near. We will use charts to guide us.