US oil signals mixed
USO•US oil is consolidating between $88.78 and $90.66 per barrel around a falling trendline. A break above $90.66 would confirm a reversal of the downtrend from $106.75, while a break below $88.78 may lead to $85.75-$87.62.
1. Mixed technical signals
US oil has climbed back above a falling trendline after failing to break through it on its first attempt, leaving the signal unclear. The contract is consolidating in a narrow range of $88.78-$90.66 per barrel.
2. Possible next moves
A break above $90.66 would confirm a reversal of the downtrend from $106.75, while a break below $88.78 may trigger a fall into the $85.75-$87.62 range. On the daily chart, oil has climbed into a triangle after briefly falling below it; the pattern's direction remains unclear.
3. Trend signal ahead
Further candlesticks forming by the end of the week are expected to make the trend signal clear enough to indicate the next direction.
