If EU efforts to ban Russian oil fall apart, there could be a real rout in oil.
Technically, it earlier looked like oil could break the wedge pattern that’s been forming for two-and-a-half months. Instead, that’s starting to look like a false breakout as oil reverses to $108.21 from a high of $111.37.
There’s lots of room for a ‘catch down’ trade in oil if the market gets further jitters about global growth. Crude has been remarkably resilient in the last few weeks.
This article was originally published by Forexlive.com. Read the original article here.