Crude oil price is trading softly higher today. However, in spite of the fact that the price action had been creating a series of higher lows in the previous days, the bulls are unable to push the price above the $55.00 handle. It seems that investors are still worried that growing signs of economic weakness will eventually hurt the demand for crude oil.
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At the end of the last week, the data from China’s National Bureau of Statistics showed weaker-than-expected growth as the GDP expanded at a 6% rate in the third quarter, the slowest in 27 years.
The crude oil price is trapped in the symmetrical triangle, thus reducing the space for further consolidation. The $54.50 mark represents currently the triangle resistances while the lower trend line will support the bulls at around $52.30.
As triangles are categorized as continuation patterns, watch out for a potential breakdown in crude oil prices in the coming days.Download our latest quarterly market outlookfor our longer-term trade ideas.
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