a megaflag pointing to 120 USDWe have encountered two gigantic patterns. Oil will visit both $48 and 120 USD. The question is, which price will it reach first?
The expanding wedge allows for the completion of the large flag that takes us to $120
Bull patterns:
A mega Flag
A Flag
And a symmetrical triangle that completely changes the down trend for now
Bearish patterns:
expanding wedge
So, first we will see oil prices reach $120 USD, then the economy will start getting hit by stronger inflation cause by the high energy prices, which will lead us to a demand destruction and finally the prices will go down to $48 USD.
NOTE:If the 48 USD wedge occurs first, this will allow the oil price to be released of any pressure to stay in the 100 level.