In remembrance of Sir Charles Dow (the father of Technical Analysis), it is evident from Crude Oil's chart that "PRICE DISCOUNTS EVERYTHING."
Presently, crude oil is trading in a highly indecisive zone, the same as the state of geopolitical issues. Nobody knows exactly what's going on in the Middle East War and how the war would impact oil prices.
Technical Analysis is Peace:
Amidst all the confusion and uncertainty, technical analysis offers peace and clarity. The Crude Oil price structure discounts all global factors into a chart pattern. Technical analysts can directly refer to the chart (instead of news) to conclude that the crude oil price is under a state of confusion. Also, there is no trend in the instrument.
The Pennant Pattern:
A pennant chart pattern is a technical analysis continuation signal comprised of a flagpole and a consolidation period with converging trend lines. The pattern shows a tough fight between the bulls and bears, with no clear winner. It is a state of confusion and a major consolidation. Presently, the crude oil chart is in a state of confusion and a major consolidation.
Zone of Indecision (ZOI): (105 - 85).
The crude oil is volatile in a wide range of (105 - 85). Here, the median of the range-bound consolidation is 95. It is an estimate that if the price sustains below the level of 95, then there is a higher probability of the crude oil price going down (maybe below 85). However, if the price sustains above the level of 95, then we might lose bearish optimism (i.e., the crude oil might again be bullish). Presently, we have to wait for a breakout or breakdown from the ZOI for trend confirmation. The crude oil is not in a state of trend trading. In this scenario, the non-directional traders are winning the game.
Strong Resistance Zone: (105 - 95).
The crude oil has received severe rejection from the zone (105 - 95). For the price to enter into a bullish zone, the price needs to break out above the level (105 - 95). In the present scenario, doubt all the upmove.
Strong Support Zone: (90 - 85).
The crude oil has received good support from the zone (90 - 85) every time it has fallen. For the price to enter into a decisive bearish trend zone, the price needs to break down below the level (90 - 85).
Bullish Scenario: A Decisive Breakout above the level 105
Confident bulls would emerge the moment the price gives a decisive breakout above the level 105. The bullish targets above the level 105 are - 110 and 115.
Bearish Scenario: A Decisive Breakdown below the level 85
Confident bears would emerge the moment the price gives a decisive breakdown below the level 85. The bearish targets below the level 85 are - 80 and 75.
Disclaimer:
(i) The post is purely based on technical and chart analysis. The author has not studied the fundamentals. Thus, any fundamental or macroeconomic event can disrupt chart analysis.
(ii) The author has no intention to promote buy or sell recommendations.
(iii) The post is only for educational purposes.
(iv) The intent of the post surrounds trading levels only and not investment ideas.
(v) Novice traders should stick to the cash segment for swing trading instead of F&O. This post has no intention to promote F&O trading.
(vi) Please be mindful during trading and investment decisions. Be Responsible.
Happy Trading!
Presently, crude oil is trading in a highly indecisive zone, the same as the state of geopolitical issues. Nobody knows exactly what's going on in the Middle East War and how the war would impact oil prices.
Technical Analysis is Peace:
Amidst all the confusion and uncertainty, technical analysis offers peace and clarity. The Crude Oil price structure discounts all global factors into a chart pattern. Technical analysts can directly refer to the chart (instead of news) to conclude that the crude oil price is under a state of confusion. Also, there is no trend in the instrument.
The Pennant Pattern:
A pennant chart pattern is a technical analysis continuation signal comprised of a flagpole and a consolidation period with converging trend lines. The pattern shows a tough fight between the bulls and bears, with no clear winner. It is a state of confusion and a major consolidation. Presently, the crude oil chart is in a state of confusion and a major consolidation.
Zone of Indecision (ZOI): (105 - 85).
The crude oil is volatile in a wide range of (105 - 85). Here, the median of the range-bound consolidation is 95. It is an estimate that if the price sustains below the level of 95, then there is a higher probability of the crude oil price going down (maybe below 85). However, if the price sustains above the level of 95, then we might lose bearish optimism (i.e., the crude oil might again be bullish). Presently, we have to wait for a breakout or breakdown from the ZOI for trend confirmation. The crude oil is not in a state of trend trading. In this scenario, the non-directional traders are winning the game.
Strong Resistance Zone: (105 - 95).
The crude oil has received severe rejection from the zone (105 - 95). For the price to enter into a bullish zone, the price needs to break out above the level (105 - 95). In the present scenario, doubt all the upmove.
Strong Support Zone: (90 - 85).
The crude oil has received good support from the zone (90 - 85) every time it has fallen. For the price to enter into a decisive bearish trend zone, the price needs to break down below the level (90 - 85).
Bullish Scenario: A Decisive Breakout above the level 105
Confident bulls would emerge the moment the price gives a decisive breakout above the level 105. The bullish targets above the level 105 are - 110 and 115.
Bearish Scenario: A Decisive Breakdown below the level 85
Confident bears would emerge the moment the price gives a decisive breakdown below the level 85. The bearish targets below the level 85 are - 80 and 75.
Disclaimer:
(i) The post is purely based on technical and chart analysis. The author has not studied the fundamentals. Thus, any fundamental or macroeconomic event can disrupt chart analysis.
(ii) The author has no intention to promote buy or sell recommendations.
(iii) The post is only for educational purposes.
(iv) The intent of the post surrounds trading levels only and not investment ideas.
(v) Novice traders should stick to the cash segment for swing trading instead of F&O. This post has no intention to promote F&O trading.
(vi) Please be mindful during trading and investment decisions. Be Responsible.
Happy Trading!
Note
Date: 08.06.2026Time: 20:50 IST
Strong Resistance Zone: (105 - 95) is still holding.
Zone of Indecision (ZOI): (105 - 85) is still intact. Crude Oil is still in the indecision zone. Thus, it will be difficult for the trend traders to execute confident trades.
Price is still below the median of ZOI: 95.
Price perfectly got support from the strong support zone: (90 - 85).
INSIGHT: We have to wait for either a breakout or a breakdown from the Zone of Indecision (105 - 95).
Note
Date: 11.06.2026Time: 21:45 IST
Strong Resistance Zone: (105 - 95) is still holding.
Zone of Indecision (ZOI): (105 - 85) is still intact. Crude Oil is still in the indecision zone. Thus, it will be difficult for the trend traders to execute confident trades.
Price is still below the median of ZOI: 95.
Price perfectly got support from the strong support zone: (90 - 85).
INSIGHT: We have to wait for either a breakout or a breakdown from the Zone of Indecision (105 - 95).
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.