Light Crude Oil prices continue to range after candles yesterday shown signs of resistance where prices plunged just after touching 51. Candles have reached the top of the triangle where we await shorting opportunities. The nearest support continues to lie at 48.74 where we may see a possible reversal of the current bearish run today.
Focusing on H1 chart, candles broke above the downward sloping trend line where we expect a breakout. However, candles subsequently fell back within the triangle, indicating a false breakout which could be due to uncertainty in the market whether prices could continue to hold above 50. Should candles continue to hold below 50 and within the triangle, trend direction is still likely to remain bearish.