2026-01-13 01:35:00
Is WTI crude oil gearing up for a major reversal?
The energy commodity seems to have broken above the neckline of its double bottom pattern on the 4-hour chart.
Check out these potential upside targets in case the uptrend gains traction!
After a volatile start to the year, crude oil appears to be picking up on more bullish energy, possibly as a result of the fallout from the Venezuela crisis.
At the same time, a bit of risk-taking thanks to improving U.S. economic data could be propping the energy commodity higher on expectations of stronger demand down the line.
Can it stage a steady uptrend from here?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on WTI crude oil and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Price just surged past the neckline of its double bottom pattern around the pivot point level ($58.01) and appears to be setting its sights on the next bullish target at R1 ($60.44).
Sustained bullish momentum from there could even take crude oil up to the November highs closer to R2 ($62.11), but be sure to watch out for potential profit-taking around key psychological levels as well.
On the other hand, a return in bearish pressure could still spur a retest of the broken neckline resistance or perhaps a dip back to the lows near S1 ($56.43) if the commodity struggles to hold its ground.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
