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.
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Pay attention - Monthly double bottom near X with trend line support