December WTI crude oil futures continue to coil up, with the swings becoming increasingly smaller since the end of August. This signals that while oil has been broadly directionless that is about to change. To start October oil posted a monster week to the upside, since then it has been digesting.
This price action coupled with the longer-term trend uptrend suggests the wedge that is building is more likely than not to resolve to the upside. However, even though probability appears skewed to the top-side confirmation is needed.
