Oil below 40$ - Two important levels to monitor now - Update
On my latest analysis I mentioned two patterns in Crude Oil:
1. Monthly Bullish Bat (yellow)
2. Weekly Head and Shoulders patterns (neck line in red dashed line)
As it looks right now, the neck line of the weekly Head & Shoulders pattern was broken last week. If it wasn't December and a week before FOMC, I'd take this signal very seriously.. But it is.. and I have to consider the option that we may see a huge short squeeze in oil that will lead to a weekly reversal.
The monthly bullish pattern is still valid and the price is very close to re-testing the X point level (also testing the spikes lower trend line (green dashed line) – 33-35$ is now in focus as it'll play as a weekly support zone. A breakdown of this support zone can lead Oil prices towards the 20$ zone
40$ is now a strong resistance zone and the first target zone you should consider if you intend to bet on a bullish move.
1. Monthly Bullish Bat (yellow)
2. Weekly Head and Shoulders patterns (neck line in red dashed line)
As it looks right now, the neck line of the weekly Head & Shoulders pattern was broken last week. If it wasn't December and a week before FOMC, I'd take this signal very seriously.. But it is.. and I have to consider the option that we may see a huge short squeeze in oil that will lead to a weekly reversal.
The monthly bullish pattern is still valid and the price is very close to re-testing the X point level (also testing the spikes lower trend line (green dashed line) – 33-35$ is now in focus as it'll play as a weekly support zone. A breakdown of this support zone can lead Oil prices towards the 20$ zone
40$ is now a strong resistance zone and the first target zone you should consider if you intend to bet on a bullish move.
Comment:
Pay attention - Monthly double bottom near X with trend line support
Comment:
Pattern barley holds - but still valid!
