Jan 23, 2017 - Weekly Charts - Is it a bull or a bear sitting on WTI Crude chart?

Technically the WTI chart showed a period of consolidation during the holiday season after the strong rally at the end of November. The market was uncertain about the direction and this indecision formed a double top, which the bears failed to complete. Last week a higher low was completed in combination with a morning doji star pattern (if we consider the previous month movements as a moderate downtrend).

Currently it looks like rather a bullish flag especially if we put on our weekly chart some wave analyses. We clearly see that the third wave(-s) was (were) still not completed and this indicates that there could be left some more space for the bulls to run before the bear will force them to retest the rising trend line. 

What is not visible on the weekly but only on daily chart, is the double top pattern. Therefore we need to be ready to change our view if the bears manage to break 51.50 as additional $4-$5/bl. decline could easily follow.

Good Luck and remember to watch your risk and be consistent.

Mr. Tech Man

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