US Crude Oil futures retreated with equities in relatively quiet trading. The move lower appears to confirm the technical breakout from a Rising Wedge chart pattern detected by Autochartist, shown here on the 240-minute time interval.
This is a classic Rising Wedge formation which began developing in early October and now measures a healthy 71 bars in length. The pattern registers high marks in Clarity and Initial Trend readings, with an overall Quality ranking of 7 bars.
The projected price target from the breakout suggests a decline to a minimum of $81.98 per barrel, with the bottom end of the forecast seen as low as $76.27 per barrel. As the breakout occurred on very high 10-bar momentum reading and the wedge has been developing over a long time frame, an overshoot of the minimum downside target is more probable.
This move may take several days to unfold given the price range anticipated. Traders should watch for shorter time frame patterns, including possible reversal signals, to develop on the Autochartist platform as this trend progresses.
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