On this daily chart
, we observe a classic "Rising Wedge" formation. By definition (refer to Technical Analysis
of Stock Trends by John Magee) it is a pattern where there is "a gradual petering out of investment interest. Prices advance but each new up wave is feebler than the last" . Also we can see an irregular ABC
pattern again (typical of corrective waves). As we mentioned before in Part I, the prices reached a higher time frame Resistance (refer to weekly chart around 2010). Today, we see some significant down turn for the Oil
, even though there was progress during the day. As it stands at the moment, the daily bar is a "inverted hammer" in japanese candle stick terms. Will this pattern hold for the day? Is it the beginning of a down trend to 44$ levels? We shall wait until the wedge
lower trend line
is broken decisively and see when the price action unfolds in the coming days.