The oil market is forming a classic pennant formation. There may be some issue with which top line trend line to use. I have added A and B because both are technically correct. Trend lines connect important points on the chart. Trend line A connects the tops of the candle's shadows which are the highest points of the candles. Trend line B starts and ends at the top of a candles and moves through various shadows. Regardless of which trend line you like the point is the tops are pointing downward.
C.) Prices bounced off of the 200 day EMA. This indicates we're still in a bull market.
We're still in a bullish EMA situation -- shorter EMAs are above longer EMAs and all the EMAs are moving higher. But the fact that prices are in a consolidation pattern indicates oil is waiting for something.
