December Crude Oil is straddling a pair of Gann angles at the mid-session. This is temporarily holding the market in place despite bullish equity indices and a weaker U.S. Dollar.
Daily December Crude Oil Pattern, Price & Time Analysis
Downtrending Gann angle resistance from the $101.83 main top is at $93.58. Uptrending Gann angle support from the $75.15 main bottom is at $92.15. The triangle formed by these angles is indicating impending volatility. With the main trend up on the daily chart, there is a bias to the upside, but rather than guess at the next move, traders should go with the action following the next breakout.
This is going to be a momentum move so volatility is going to be necessary to sustain it. Since the market has been up for a prolonged period of time, long traders will have to watch for a possible bull trap. This can be avoided with tight stops or a quick exit if intraday volatility collapses after the breakout.
