Hi Traders!
We have a potential double-top opportunity on the USOIL 1D chart.
Our previous bullish view worked perfectly, and our prediction of reaching the 83.49 resistance after the psychological 80.00 break came through. The market looks to now be exhausted near the 83.49 resistance level, and the price action is indicating a possible reversal of the bullish trend we have had over the past couple of months.
If 83.49 resistance continues to hold here, it will be a confirmed double top, which is a reversal chart pattern. We are looking for additional confirmation signals; the first one is a break and close below the 20 EMA, and the second one is a lower break below our RSI indicator. A lower break on the RSI will give us extra confirmation that the market has been overbought. The first target is at 77.02, and further below we have a second target at 73.75.
That being said, we must be wary of this not happening and a continuation to the upside, so stops must be very tight, ideally just above 83.49. The market is still above the EMA, so we must not rule out the possibility of a continuation upward.
Please do not forget to like, comment, and follow, as your support greatly helps.
Thank you for your support.
BluetonaFX
We have a potential double-top opportunity on the USOIL 1D chart.
Our previous bullish view worked perfectly, and our prediction of reaching the 83.49 resistance after the psychological 80.00 break came through. The market looks to now be exhausted near the 83.49 resistance level, and the price action is indicating a possible reversal of the bullish trend we have had over the past couple of months.
If 83.49 resistance continues to hold here, it will be a confirmed double top, which is a reversal chart pattern. We are looking for additional confirmation signals; the first one is a break and close below the 20 EMA, and the second one is a lower break below our RSI indicator. A lower break on the RSI will give us extra confirmation that the market has been overbought. The first target is at 77.02, and further below we have a second target at 73.75.
That being said, we must be wary of this not happening and a continuation to the upside, so stops must be very tight, ideally just above 83.49. The market is still above the EMA, so we must not rule out the possibility of a continuation upward.
Please do not forget to like, comment, and follow, as your support greatly helps.
Thank you for your support.
BluetonaFX
