The rising wedges resistance is capping the price of oil on the 60 handle.
This is likely to be a tough area of resistance but on a break above trend line resistance and the 61.20s, bulls will have a green light to attack territory towards the 61.8% Fibo in the 63.60s, reviving prospects for the 70 handle.
However, what should be concerning to the bulls is the bearish divergence in stochastics as marked by the verticle red line on the chart and green descending horizontal line on stochastics.
While below 61.20, bulls should tread with caution.
On the flip side, a break of the 50% Fibo and cloud support and thus trend line support at 54.50m will open a case for 50.50 as the 23.6% Fibo support structure.
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