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
May 30, 22 07:20 AM
What is the market doing and what is it likely to do?
Apr 27, 22 09:01 AM
As we enter April, will we continue to move higher or will there be a correction coming?
Apr 13, 22 11:46 PM
Apple is one of those stocks that we should look at almost every day. The reasons is because it is a component of the Dow Jones, the S&P 500 and the Nasdaq.
Apr 12, 22 09:38 AM
Here are a list of stocks that are at their 50 MA and 200 MA. The 50 day moving average and 200 day moving average can be a support area where stocks bounce off
Apr 12, 22 09:34 AM
Here are a list of stocks that have broke out or about to break out. Breakout stocks can often give us a good reward to risk ratio.