An important thing to note with contraction fakeouts, if they are valid and work out, is that a vicious reversal usually follows.
Currently, price action came right back into the contraction and is testing the bottom layer of it, which could easily create a breakout. Later in the day we do get the US Crude Oil Inventories which could be the push the WTI bears :bear: need to start moving lower.
As you may notice WTI has strong fluctuations in price, most recently seen on the 18th of November and 29th of November.
The two main support areas right now are, 58,450 & 57.850, if we do go short again we would target these two levels.
Of course for the definite stop-loss area, we would want to target above the highest pattern high, which is 61.015 ( <-- higher than that price of course, maybe 61.200 or 61.300)
Currently, price action came right back into the contraction and is testing the bottom layer of it, which could easily create a breakout. Later in the day we do get the US Crude Oil Inventories which could be the push the WTI bears :bear: need to start moving lower.
As you may notice WTI has strong fluctuations in price, most recently seen on the 18th of November and 29th of November.
The two main support areas right now are, 58,450 & 57.850, if we do go short again we would target these two levels.
Of course for the definite stop-loss area, we would want to target above the highest pattern high, which is 61.015 ( <-- higher than that price of course, maybe 61.200 or 61.300)
