Several signals for this market having changed course;
- A lower high has been followed by a lower low
- A Head and Shoulders Neckline has been broken setting a 65.50 target
- A longer term uptrendline has also been broken
In theory the neckline (73.30) is retested before the move toward the target begins. The retest was seen yesterday. If bears are serious the market should slide from here again. 71.20 sees support, below 69.00 is likely.
One should be wary however of a bear-trap; The latest low is at a standard 50% Fibonacci level on a daily basis. On a weekly basis a correction is well possible (south).
Therefore, a move over and holding on a closingbasis above 73.50 may negate the bearish setup. If one is brave one could short here and go for that 65.50 move with stops over 75.92 (latest lower daily high). This is a speculative trade following up patterns and going against the broader trend. Use stops accordingly.
In a broader view the current move is likely a correction against the bigger uptrend; longer term players better await a bullish weekly signal to pick up oil, possibly against that 65.50 mark.
- A lower high has been followed by a lower low
- A Head and Shoulders Neckline has been broken setting a 65.50 target
- A longer term uptrendline has also been broken
In theory the neckline (73.30) is retested before the move toward the target begins. The retest was seen yesterday. If bears are serious the market should slide from here again. 71.20 sees support, below 69.00 is likely.
One should be wary however of a bear-trap; The latest low is at a standard 50% Fibonacci level on a daily basis. On a weekly basis a correction is well possible (south).
Therefore, a move over and holding on a closingbasis above 73.50 may negate the bearish setup. If one is brave one could short here and go for that 65.50 move with stops over 75.92 (latest lower daily high). This is a speculative trade following up patterns and going against the broader trend. Use stops accordingly.
In a broader view the current move is likely a correction against the bigger uptrend; longer term players better await a bullish weekly signal to pick up oil, possibly against that 65.50 mark.