It’s all about chart patterns on today’s canvas!
Check out these symmetrical triangles on the 4-hour charts of GBP/CHF and WTI crude oil.
GBP/CHF: 4-hour
First up is this support bounce off the triangle bottom on GBP/CHF.
Is the pair about to test the resistance anytime soon?
The short-term double bottom breakout is suggesting that a rally of the same height as the chart pattern, which spans around 150 pips, is in the cards.
This might be enough to take the pair to the triangle top around 1.1400-1.1450, which might keep gains in check. After all, technical indicators are hinting at a return in selling pressure.
Stochastic is already approaching the overbought zone to reflect exhaustion among buyers while the 100 SMA is below the 200 SMA.
Heck, the 200 SMA dynamic inflection point might even be enough to hold as a ceiling if pound bears are eager to return!
WTI Crude Oil: 4-hour
Heads up, crude oil bulls!
The commodity is closing in on the top of its symmetrical triangle visible on the 4-hour chart, so the recent rallies might be cut short.
Resistance at the $78 per barrel area might hold, as technical indicators are suggesting that bullish pressure is fading.
For one, Stochastic is already in the overbought territory, so turning lower would confirm that sellers are taking over. In that case, crude oil could fall back to the triangle support around $75 per barrel or lower.
However, the 100 SMA seems to be bracing for a moving average crossover above the 200 SMA to suggest a pickup in bullish momentum.
If so, crude oil could attempt to bust through the triangle top and go for a rally that’s the same height as the chart formation.
Better keep your eyes peeled for either reversal or breakout candlesticks around the resistance then!
