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Welcome to Extreme Investor Network, where we provide expert analysis and insights into the stock market, trading, and all things Wall Street. Today, we are diving into a small expanding triangle consolidation pattern that has formed in the crude market. This pattern is a key indicator of potential price movements, and we are here to break it down for you.
Understanding the Small Expanding Triangle Consolidation Pattern
Crude oil has been consolidating for four days, forming a small expanding triangle pattern. This pattern could signal a potential breakout to the upside or a retracement. The current decision point is crucial, as crude will either break out to higher prices or face selling pressure and retrace some of its recent gains. Keep an eye on this pattern as it could lead to significant price movements in the crude market.
Key Resistance Levels to Watch
Crude oil has been testing key resistance levels over the past four days, showing its strength near recent highs. Resistance is seen at the 61.8% Fibonacci retracement level, as well as the convergence of multiple trendlines. A breakout above the 82.26 price level could signal a continuation of the rising trend. However, further consolidation may be seen before a decisive breakout occurs. Keep a close watch on these resistance levels as they could dictate the future direction of crude prices.
Analyzing Tuesday’s High and Rally
On Tuesday, crude oil saw a high that completed a 13.1% rally from the June 4 swing low. This rapid increase in price indicates a strong bullish outlook. Further consolidation near recent highs could be a healthy sign before any continuation of the upward trend. If a breakdown from the expanding triangle pattern occurs, the 79.25 price area and the 38.2% Fibonacci retracement at 78.61 could be key targets to watch.
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