Could Crude Oil Bulls Force Price Reversal?

Oil prices continue as one of the hottest issues across global financial markets. WTI Crude Oil has spent the most of the previous three months funneling lower, taking on the form of a falling wedge. Such formations are often tracked for bullish reversal potential.

The price action is consistent with two key technical elements that are in-play on Monday. As for support, traders and investors are looking to a zone of price action support that has been in-play over the past decade. It is a wide zone, but given price action in WTI over the past decade, it I obvious that this is a key range of prices for oil producers.

This zone helped to set support when prices were scaling-higher from 2011-2014. And then it became a zone of resistance in 2018 and again in early-2021, just before the Q4 breakout really started to hit. And even when that did happen, the 85.90 level helped to mark the October high and, so far this month, is helping to mark the August 2022 low.

That 85.90 level came into play last Tuesday. But, it remains in-play today as support. At the very least, this illustrates a clean example of prior price action resistance-turned-support.

Going down to the daily chart in crude oil and a falling wedge becomes prominent. This is a formation that shows between two unequally-angled trendlines. Resistance remains at the more aggressive trendline, and this illustrates greater aggression from bears when price is at or near resistance.