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
Feb 25, 21 07:54 AM
In this week we will have a look at VUZI, KSS, PBCT, CBRE, SPG, KPOWER and the lessons from their chart.
Feb 17, 21 09:44 AM
In this week's chart lessons, we will be looking at NVDA, SPX and KLCI, LKCO and MVIS.
Feb 10, 21 08:10 AM
Let's take a look at the SPX and MSFT, TLRY and KGB this week. Continuation patterns can be strong indication of bullishness.
Feb 04, 21 12:21 AM
In this week chart lesson we will have a look at the S&P 500 as well as Top Glove and also Bitcoin.
Jan 25, 21 10:59 AM
This week's chart lessons. Some interesting developments in TSLA and AAPL.