Chart: WTI Crude Oil (USOIL) Targeting triangular resistance

Crude oil has been on a tear these days, but can it sustain its rise beyond this major resistance area?

And if so, how high can it go?

Check this long term chart pattern on my radar!

WTI Crude Oil (USOIL) Daily Chart by TradingView

Crude oil has been forming lower highs and higher lows since last July, creating a visible symmetrical triangle on its daily chart.

The price made a strong comeback at the bottom of the triangle and appears to be halfway in its climb to the top, meeting some resistance at the pivot point ($79.22 per barrel) and the dynamic inflection point of the 100 SMA .

Can we go further north from here?

Remember that directional biases and market price volatility conditions are usually driven by fundamentals. If you haven’t done your homework on crude oil and market sentiment yet, then it’s time to check the economic calendar and catch up on the daily fundamentals!

News of worsening geopolitical conflict in the Middle East is stoking supply concerns once again, driving energy commodities higher on expectations of production disruptions if attacks escalate.

However, the spotlight may soon shift to the general risk-on sentiment boosted by US inflation updates, as the upcoming CPI release could further weigh on the Fed’s interest rate cut expectations. While the possibility of an easing move in September appears to be on the cards, traders are still divided on the extent of the potential cut.

A rebound in risk appetite stemming from expectations of a further cut in US borrowing costs could encourage crude bulls to charge, potentially taking the commodity beyond the top of the triangle and onto R1 ($83.81 a barrel) and beyond .

On the other hand, stronger-than-expected US inflation numbers could dampen expectations of easing for the rest of the year and send risk assets lower.

For crude oil, consider reversal candlesticks at current levels or triangle resistance, as this could push the commodity lower near S1 ($73.96 per barrel).