Ascending Broadening Wedge Breakout for Crude Oil
Crude oil prices edged lower on Monday as indications of in progress development in U.S. output and indecision over whether OPEC would ease production restrictions sustained to reflect on sentiment.
According to data from energy services firm Baker Hughes - the number of oil rigs operating in the US increased by 2 to 861, its highest level since March 13, 2015,
The increase in drilling activity emerges as the Energy Information Administration said last week U.S. oil output rose 215,000 barrels per day to a record 10.47 million barrels per day in March.
The crude oil prices daily chart has broken the support line for “Ascending broadening wedge chart pattern “. According to the crude oil chart, the main trend remains bearish but the RSI has oversold and triggered the level 33% which is an indication that more correction towards 30%-25% level can be expected. At the same time, the next support can be seen at $62.
As per the pattern, the target waits for selling to occur and continue towards downside target. On the other hand, traders wait in anticipation for June 22-OPEC meeting. OPEC may control inventory overflow which is likely to result from buying opportunity with bottoms.