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  • 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

Trend: Neutral

Technical levels