- WTI oil is stuck in a descending triangle on the hourly chart.
- A triangle breakout would open the doors to $54.80 (June 10 high).
WTI oil is trading steady near $51.90, having dropped 1.7% on Monday on global growth concerns and forecasts by the US energy department that shale oil output could reach a record in July.
The outlook remains bearish with a series of bearish lower highs and lower lows on the daily chart and 5- and 10-day moving averages (MA) trending south.
However, a corrective rally to $54.80 (June 10 high) could be seen if the price breaks above $52.50 today, confirming a descending triangle breakout on the hourly chart. A daily close above $54.80 would confirm a double bottom breakout.
A triangle breakdown, however, would shift risk in favor of a retest of recent lows near $50.70.
Hourly chart
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Trend: Bullish above $54.80
Pivot levels
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