• Oil prices will remain sideways on symmetrical triangle formation.
• Investors should brace for a volatility contraction, which will be followed by an expansion in the same.
• A move above 60.00 by the RSI (14) has underpinned bulls.

West Texas Intermediate (WTI), futures on NYMEX, has slipped below the immediate support of $97.00 after facing barricades while attempting to recapture a weekly high at $98.24. The black gold has displayed a confined range for the whole week amid the unavailability of a potential trigger.

Oil prices are auctioning in a Symmetrical Triangle chart pattern that indicates a squeeze in the volatility, which is followed by a breakout in the same. The upward sloping trendline of the above-mentioned chart pattern is placed from July 14 low at $88.34 while the downward sloping trendline is plotted from June 21 high at $100.30.

The 20-and 50-period Exponential Moving Average (EMA) at around $96.00 are overlapping on each other, which signals an ongoing consolidation in the asset.

However, the Relative Strength Index (RSI) (14) has crossed 60.00, which signals that the oil bulls have an upper hand.

A decisive break above Wednesday’s high at $97.86 will trigger the symmetrical triangle breakout and will activate oil bulls for an upside towards the psychological resistance at $100.00, followed by July 8 high at $102.77.

Alternatively, bears could gain control if the asset drops below Wednesday’s low at $93.33. An occurrence of the same will drag the asset towards July 12 low and July 14 low at $91.70 and $88.34 respectively.

WTI hourly chart