Reached the peak of the megaphone developed since January 2015. Expecting 0.5 fib pull back of the leg starting from $41.98 before resuming the uptrend to $77 range.
Given that $54 have been a strong resistance earlier (and now a support), it could be a potential target to start closing short.
Entry: 59.36/60.48 Stop loss: 62.65 (new highs) Take profit: 52~54
Very nice call! If it gets back in the channel the scenario will be very bad for crude oil...
ElPatron.Y
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Also a bearish divergence is there on the daily chart. Looks like the bulls are tired here.
QuantitativeExhaustion
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ElPatron.Y
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Thanks JR, we have to be aware of all scenario's right? Going short here is pretty wise move, because it might go even lower if we break the channel top and get in the channel.. Then it will act like resistance instead of support.
ElPatron.Y
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I've seen crude is highly related with eurusd high DXY, is weak oil and weak eurusd. Looks like picture perfect?
QuantitativeExhaustion
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Sure anytime this week we could see a drop in oil / Euro.
ElPatron.Y
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Smaller tf shows the wedge has broken out even bad NFP-data couldn't stop this. Looks like it will head for resistance again.
ElPatron.Y
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Keep in mind the crude oil still has a big bullish div on monthly which isn't played out :D