WTI technical analysis: Sidelined near $51.90 with descending triangle on hourly chart

• WTI oil is stuck in a descending triangle on the hourly chart. 
• A triangle breakout would open the doors to $54.80 (June 10 high). 

WTI oil is trading steady near $51.90, having dropped 1.7% on Monday on global growth concerns and forecasts by the US energy department that shale oil output could reach a record in July.

The outlook remains bearish with a series of bearish lower highs and lower lows on the daily chart and 5- and 10-day moving averages (MA) trending south. 

However, a corrective rally to $54.80 (June 10 high) could be seen if the price breaks above $52.50 today, confirming a descending triangle breakout on the hourly chart. A daily close above $54.80 would confirm a double bottom breakout. 

A triangle breakdown, however, would shift risk in favor of a retest of recent lows near $50.70. 

Hourly chart

Trend: Bullish above $54.80

Pivot levels