Crude Oil paints a scary scenario

It wasn't long ago that media and the analysts spoke of $100 a barrel as a thing of the past. The crude oil renko chart paints a scary picture. Of course, given that renko is not time based, the target price of... hold your breathe 139.6

Crude Oil - Long Term Chart Pattern

What we have here is a classic rising or ascending triangle. Static/horizontal resistance at 109.19/110 and a rising support level. However to validate this trade, we'll need to see a break and possibly a retest of 110 before we can assume anything.

To make the analysis fair, the first minor upside risk comes in at 103.96. A break of this level could see some choppy price movements with bias both to the upside as well as downside.

That said, any bearish moves or correction to this uptrend should ideally be capped not any lower than 98.34. A break of this level could invalidate the long (and scary scenario) and we will have to revisit this trade analysis.

Also risks to the upside remain at 110 as we see a double top formation. A break below 78.57 gives a target of $47.40.

Yes, this chart gives some way off prices for Crude Oil, but its worth bearing this in mind.

P.S: I do envisage a test to 106.74 and a decline back to 98.34.