WTI Crude Oil: Bubble burst on the go? Or rocket to space? 25.4Let's be practical.
There's 2 ways this can go.
(refer back to my 19.4 update about the slip we see in the last few days)
1) Triangle consolidation since the peak of 128 back in March is with a 102.90 resistance level.
A breakout above with a daily candle close confirms up-trend breakout and 105, 108, 115 would be immediate possible targets.
2) A breakout below cluster level of supports between 94-96 will be confirmed with a close below 93-94 with a daily candle.
This would be high probability bubble burst similar to what we've witnessed back in 2008, 2014 and 2018 with massive $50+ declines.
Immediate possible targets would be 88, 84 and 75.
Fundamentally speaking, Chinese lockdown as well as India possibly also announcing restrictions soon provides bearish support together with possibility of reserve release from multiple directions (USA, China, SHELL, Aramco, OPEC, etc...).
For the bullish fundamentals we have war escalating (already going for 3 month, most probable impact is priced in) and inflation (During 2008 inflation did not help oil keep above 3 figures for more than days).
On a personal note - I believe there's higher probability for a breakout down considering above points.
I encourage you to do your own research before trading this idea or in general :)
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