The rally was rejected by the supply zone which is the yellow box. It formed a head and shoulders pattern as a reaction and a sign of reversal. The pin bar formed on the 4 hour chart to confirm that it has also rejected the neckline which is confluent with the 50 SMA colored red.
This is a nice 1:42 risk to reward ratio.
I see a sell setup between 17,800 - 17,900. This zone is also the pullback where the strong selling resumed during the Brexit day. So I see this as a level to be tested for the first time.
I believe US30 (Dow Jones) will break below last week's low.
WTI/USOil formed a large head and shoulders pattern. After the recent oil recovery which is actually a pullback, price action reversal patterns are forming at the neckline of the head and shoulders pattern which is also a supply zone followed by an impulsive downward movement of the price.
The recent recovery in price acts as a pullback of the head and shoulders...
