Wedge Pattern on OIL Suggests A Reversal
Crude OIL has been in an uptrend since June of 2017, a five-wave cycle that can come to an end. Specifically, we see energy trading within an uptrend channel, currently in the fifth wave that is testing the upper parallel resistance line where the fifth wave can look for a top.
In fact, we see a wedge pattern forming up in the last month or so, which is normally evidence of a bulls slow-down.
This is also confirmed by divergence on the RSI that is very common when comparing highs of wave three and five.
That being said, rather than looking and building any new bullish set-ups in this phase of a trend, we suggest being aware of a potential retracement of a higher degree.
Resistance area is around $73.00
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
In fact, we see a wedge pattern forming up in the last month or so, which is normally evidence of a bulls slow-down.
This is also confirmed by divergence on the RSI that is very common when comparing highs of wave three and five.
That being said, rather than looking and building any new bullish set-ups in this phase of a trend, we suggest being aware of a potential retracement of a higher degree.
Resistance area is around $73.00
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
Comment:
Crude oil turns perfectly lower, but there is room for another almost 10% of decline from here. We are waiting pullbacks
Comment:
Crude oil made a nice and firm breach recently, below the trend line connected from August 2017 lows; this can suggest a top in place and more weakness.
Comment:
*BREAK BELOW the trend line connected from April 2018 lows can suggest more weakness.
