OIL has formed a neat rising wedge . Statistically there could be a downside breakout happening and the price could fall as much as 82% of the wedge's height. Additional signs supporting this prognosis are bearish divergences on the oscillators and potential ABC correctional wave. I'm placing a sell stop order that would trigger if there is breakout downward with a conservative take profit.
The breakout is here and the trade is on!
Price might consolidate for a while forming an inverted flag before continuing to fall down
Price is near a potential reversal level as I noticed another support line:
We also have a hidden bullish divergence forming.
If we get a reversal candlestick formation I will close the position before it reaches the original TP:
Trade closed: target reached:
Price keep forming strong bearish candles but my target is reached and I'm closing the position. The drop was sharp, it is likely we will at least see some retracement up if not full bounce and continuation of the bullish trend.