Monthly Structure on Crude Oil by ThinkingAntsOk
Use this as a guide to develop your view of the chart.
Main items we can see on the Monthly Chart:
a)In general, we do not use the monthly chart, but in this case, we need it due to the extreme volatility we have on the markets and the need to put these movements in context.
b)We can see that the price is on the lower trendline of a possible triangle structure (ABCDE) + support zone. That gives us a convergence level with high probabilities of reversals.
c)We are not expecting a reversal movement immediately, BUT we think that a corrective structure will come on this zone and will be visible on a weekly or daily chart. From there, we will make new trading decisions.
Main items we can see on the Monthly Chart:
a)In general, we do not use the monthly chart, but in this case, we need it due to the extreme volatility we have on the markets and the need to put these movements in context.
b)We can see that the price is on the lower trendline of a possible triangle structure (ABCDE) + support zone. That gives us a convergence level with high probabilities of reversals.
c)We are not expecting a reversal movement immediately, BUT we think that a corrective structure will come on this zone and will be visible on a weekly or daily chart. From there, we will make new trading decisions.