Hello dear traders. Let's take a look at the oil chart for today and identify the potential Reverse Head and Shoulders chart pattern formation.
As the price reacts to the bearish 4-hour timeframe channel, it seems to be forming a Reverse H&S pattern, which could potentially result in a bullish outcome for the price in the coming days.
We observe good synchronicity between the two shoulders around the head, with approximately the same amount of time taken to form the pattern. Additionally, the price has established a well-defined neckline, which, in the case of an upside breakout, can act as support thereafter.
As you may know, the H&S chart pattern is considered complete once there is a valid penetration of the neckline; until then, the pattern is considered tentative.
If you've found this analysis helpful, please take a moment to like, comment, or share your thoughts with me.
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Price currently is below a neckline. upside breakout will confirm the pattern.
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Price managed to close above the Head & Shoulder pattern neckline in a very good bullish 4-hour timeframe candle. looking for bearish corrective move to test a broken resistance area.
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Given the fact that the Head and Shoulders pattern has at least a 1:1 price target, and considering that the price has rejected from the lower boundary of the bearish channel, we can anticipate that the price can reach at least the upper boundary of the bearish channel.
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Huge surprising bearish move has occurred yesterday but didn't really change any condition on higher timeframe perspective and there is still a possibility of more bullish move.
i think it's more likely to go up to 78 and be below 70 when it goes back down.