In today’s analysis, let’s take a closer look at WTI oil, which made an advance to the upside yesterday, shifting the technical outlook. This movement was crucial because the price escaped from the symmetric triangle pattern marked with red lines. Normally, such a breakout is a clear bullish signal.
However, the price did not hold above for long. Instead, we saw a bearish correction, which is not unusual after a breakout but this time the retracement was deep enough to bring the price back inside the triangle. That complicates the picture. Still, buyers are not entirely out of the game — as long as key supports are defended, the bullish case remains possible.
The path forward is clear. For a proper buy signal, oil needs to break above the black line of this short-term correction and close back above the triangle’s upper boundary, while holding the green horizontal support. If achieved, this would confirm that buyers are regaining control. On the flip side, if the price closes an hourly candle below the green support and the lower red line, that would signal a decisive failure of the breakout attempt and open the door to a stronger downswing.