Oil has been consolidating on the monthly chart and looks to be forming up in either a potential Inverse H&S pattern or, at least, a triangle pattern. Regardless of which, both patterns give us trend lines to watch for any momentum-based breakout. In fact, there are trend lines showing different stages of consolidation on just about every time frame you choose to look at. Trend line heaven!
Oil monthly: watch the upper trend line for any potential bullish ‘Inverse H&S’ breakout. The height of this H&S is about $30 and so that would be the projected move for any bullish breakout:
Interestingly, any $30 breakout move above the ‘neck line’ would take price action to up around the $90 level and this is near the 10-year bear trend line. It doesn’t get much better than that for a technical analyst!
Oil weekly: The upper trend line could just be part of a consolidation-style triangle. Either way, watch for any momentum-based trend line breakout:
Oil daily: trend lines here too:
Oil 4hr: and here:
Oil 15 min: and even on this short time frame there is some consolidation after the earlier push higher. Same drill: watch for any momentum-based trend line breakout: