Major oil names are breaking technical patterns

Wednesday, 26th June 2019 14:41 - by Rajan Dhall

As geopolitical tensions rise between Iran and the US the price of oil continues to rise. Not only that, for the past two weeks the American Petroleum Association (API) inventory data showed a draw in storage levels.

Below is a one week chart of Shell (RDSA) you can see there was a clear triangle pattern with a firm breakout backed by volume. 

Now the potential target could be the wave high of 2756p per share. 

On a smaller term time frame, the BP 4 hour timeframe chart spiked out of a similar formation and has now retested the breakout to resume the move higher. On this chart, the potential target over a shorter term could be the 561.8 per share wave high. 

Lastly, the 4 hour WTI futures chart the move higher has been pretty relentless. Since the middle of June price has moved from just above $50/bbl to $59.63/bbl. In the near horizon, there is a strong resistance level were in late May price resisted a move higher twice.

 The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.

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