Black lines- triangle pattern
Oil price is trading around $77.50 at the last trading day of February. Price has made no real progress over the last 15 weeks. Price is trapped inside a trading range between $80 and $70. Near term trend is neutral with no clear direction. Price has formed a triangle pattern over the last 13 weeks. The upper triangle boundary is resistance at $80.70 and the lower triangle boundary provides support at $73.50.
Yellow rectangle- support area
Over the last 4 months the candlestick pattern shows long lower tails. Such candlestick pattern is seen near the lows or the end of a trend. Oil price candlesticks confirm the importance of support around $70. Failure to hold above this level on a weekly and monthly basis would be a bearish sign.