Crude Oil Price Forming Contracting Range

USOILH1Crude oil price after a solid rise above the $50.00 level against the US Dollar moved down. A high was formed near $50.44 and then the price traded as low as $48.0.

Later, it started trading in a range and forming a contracting triangle pattern with resistance at $49.40 on the hourly chart. On the downside, the triangle support lies at $48.80, which is a decent buy zone.

Overall, the price might continue to trade in a range above $48.80 in the near term. And, as long as the 100 hourly simple moving average is above the price, upsides remain capped.

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