For nine months, oil has formed a series of two lower highs and one higher low, coiling into the tip of a large symmetrical triangle. I am paying closing attention to the 54.50 level, where it looks to test rising trend line support and an area with significant market memory. Oil will need to resolve higher or lower in the next six weeks, and I will look to position my trades based up how it resolves.
Of concern for bulls is that the recent rally never hit overbought conditions, which is an indication of lackluster strength.
Charts Above Made Using TradingView
