WTI Crude Oil: Rising Wedge pattern in progress

WTI Crude oil future is displaying a Rising Wedge kind of pattern in progression for the last nine weeks. In this case, the rising wedge formed is in major downtrend. The Rising Wedge is a bearish pattern that begins wide at the bottom and contracts as prices move higher and the trading range narrows. Bearish confirmation of the pattern does not come until the support line is broken in a convincing fashion.

As of now, the price has reached near the apex point of the Rising Wedge pattern and in the near term, it is likely to give a breakdown. Ideally, the volumes will decline as price rises and the wedge evolves. Expansion of volume on the support line break can be taken as bearish confirmation.
 
Considering the weekly time frame, crude oil prices form a small body bearish candle. The 14-period RSI cooled off after touching 67 zone and at present, its reading is 55.63. The fast stochastic is also trading below its slow stochastic which suggest negative bias.

In the near term, the zone of US$55.50- 55.00 is likely to act as major support as is a confluence of upward sloping trendline of rising wedge and short term 21-day EMA. Failure to hold this support would lead to further correction up to the level of US$53, followed by US$51.20. While on the upside, after any decisive close above the zone of US$58.55-59.30 the oil price is likely to extend its northward journey.