We don't know if last week's agreement on oil prices signed by countries belonging to OPEC will be a "real effects" agreement, or not. If it were, it would be the main driver keeping oil priced up. What is certain, is that on the daily timeframe TVC:USOIL has broken it's corrective structure (flag) towards the upside, and heading towards it's 52.15 target, or further. Looking at the weekly timeframe , it becomes now quite clear that end of July's low of 39.17 is the right shoulder of a bigger bullish H&S pattern, with long term target in the $ 75 area.
Let's see if we can find a decent long entry point on lower timeframes with a decent R/R ratio. Updates will follow.
Let's see if we can find a decent long entry point on lower timeframes with a decent R/R ratio. Updates will follow.
Comment:
Another scenario is that, despite the upward impulsive movement of last week, Oil is still bound for a deeper downward correction through a longer term ABC movement visible in this chart, and with a "C" target in the $38 area, meaning that the right shoulder still needs to be met, in reality.
