- WTI oil created a Doji candle on Monday, signaling indecision in the market place.
- A close above Doji’s high would imply bullish breakout.
The WTI oil market is looking indecisive and a close above $59.20 is needed to revive the bullish case.
The black gold on Monday witnessed two-way business and ended on a flat note, creating a Doji candle on the daily chart. The pattern is widely considered a sign of indecision in the market place.
A close below Doji candle’s low of $57.45 would imply a resumption of the sell-off from the recent high of $63.33.
On the other hand, a close above Doji’s high of $59.20 would mean the indecision has ended with a bullish breakout. That would open the doors for another spike above $60.00.
Oil registered double-digit gains on Sept. 16 as an attack on Saudi oil facilities triggered fears of a prolonged supply cut. Since then, however, the fears have eased somewhat with Saudi officials saying that oil supplies will be normalized before the end of September.
The market, however, stands divided as to when the damaged supplies will be restored. Hence, it’s not surprising that WTI created a Doji candle on Monday.
Daily chart
Trend: Bullish above $59.20
Technical levels
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