- WTI has created a bull flag pattern on the 4-hour chart.
- Flag breakout usually accelerates the preceding bullish move.
West Texas Intermediate (WTI) oil is flashing green in Asia. A barrel of black gold is changing hands at $28.95 at press time, representing a 4% gain on the day.
Even so, the immediate outlook remains neutral as the 4-hour chart shows prices are still trapped in a bull flag, a continuation pattern, which typically accelerates the preceding upward move.
As of writing, the upper end of the flag is seen at $30. A 4-hour close above that level would confirm flag breakout and open the doors to $38.80 (target as per the measured move method). On the way higher, WTI may encounter resistance of the 200-candle average, currently placed at $33.57.
However, if the flag is breached to the downside, the 50-candle average at $25.45 could be put to test.
4-hour chart
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Trend: Neutral
Technical levels
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