WTI Crude oil trades in Contracting Triangle pattern

After witnessing fierce sell-off, crude oil prices traded in contracting consolidation from last three weeks which looks like symmetric contracting triangle in lower time frame. The contracting triangle can be a continuation or a reversal pattern. Although, more often it is a continuation pattern.

The price is likely to reach near apex point of the contracting triangle in the next week. The 14-period Day RSI is quoting around 37.80 and other indicators and oscillators are also trading in bearish territory. Price is trading below it short-term crucial moving average, i.e. 20-Days EMA and it is in falling mode.

Currently, crude oil is trading near crucial support level of US$50, on closing below this support price it is likely to touch US$45 level. On the upside, if the price breaks above the top of the triangle we may witness US$55 level, followed by US$57 level.