Looking at the chart of the futures contract for a barrel of WTI oil, we may spot that from 2016 to mid-2018 the first part of the large potential head and shoulders pattern could have formed. Then by the end of 2019, the right arm could appear.
After this time, there was a strong decline in prices, which seems to lead to breaking the potential neck line in the structure of the head with shoulders. In addition, the lower limit in a downward channel has been broken, which may indicate the strength of supply.
Both 161.8 percent Fibo expansion and the target for the mentioned pattern is in the area of USD 9 per barrel. Will this level be able to be tested in the near future?
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
After this time, there was a strong decline in prices, which seems to lead to breaking the potential neck line in the structure of the head with shoulders. In addition, the lower limit in a downward channel has been broken, which may indicate the strength of supply.
Both 161.8 percent Fibo expansion and the target for the mentioned pattern is in the area of USD 9 per barrel. Will this level be able to be tested in the near future?
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
