USOIL is forming a Head and Shoulders pattern on a medium/long term timeframe; it bounced off of the $26 dollar mark, allowing oil prices to rise to a high of approximately $52 a barrel, paying off handsomely for oil bulls. However, now concern is increasing as over extension and limited profit potential, oil bulls are beginning to take profits as selling pressure increases. I'm going to be shorting this from approximately 46 dollars with a stop loss at around 48 dollars. The first resistance point in question is 37.8 then 26-26.1. I suggest looking for a reversal to confirm the Head and Shoulders pattern. Thank you for viewing my analysis.
I'm glad you agree with my assertion! @tbuckle also posted a great contrarian chart if you'd like another viewpoint. Thank you for commenting!
tbuckle
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IT's quite possible the more accurate larger pattern is a reverse head and shoulders pattern (bullish).
ArmoredBull
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Oh I see what you are saying! Thank you for bringing it to my attention.
tbuckle
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Ya sure. No problem. The trippy thing is that it is actually a inverse h/s and a regular head and shoulders at the same time:
ArmoredBull
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The next few days will tell which analysis is correct. I will post the contrary to this chart. Fortunately, however, this chart is still a very viable option. :D
ArmoredBull
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Correction: I will post the contrary to this chart should this fail. Appreciate the feedback!
sodoba29
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55555
faris.makki
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nice one
ArmoredBull
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Thank you farris.makki! I appreciate the feedback.