IS THIS HEAD AND SHOULDERS VALID OR WE ARE GOING TO SEE THE 60?
Updated
Hello traders i hope your trading week is running as schedguled.
As i have pointed some months ago the fundamnetals for Oil were bullish despite the technicals did not.
90% of the time when we have a dispute between the fundamentals and the technicals both have right but in what order?
Short term is wise to follow the technicals and long term the fundamentals.The fundamentals do not make mistakes but sometimes maybe they need some time to apply on the technicals.This was the situation for the Oil industry as well.
But the question is what is going to happen now?
Let's see what the technicals have to say..
TECHNICALS OBSERVATIONS
1.We have a Head and Shoulders pattern about to form with the neck line as showed and the critical red area under it.
2.We can see the 2 possible scenarios the bullish one with the green arrows as neck line and critical area remain intact and the bearish scenario
if neck line and critical red suppport zone breaks to the downside.
3.RSI indicator at 50 level does not give us any good information for the the future price action only is warning us that price is currently is at an important crossroad to choose bullish or bearish behaviour.
4.Stochastics are in oversold area and they give us a small hint that we may continue to the upside and may see the 60 level eventually.
5.Price is above the 200EMA and that is favoring the longs.
6.We can also see expect the H&S pattern the ascending channel that it can be used as our last confirmation,after the neck line and the critical red support zone, that the trend has changed and we are heading lower.
THANKS FOR SUPPORT!
KEEP FOLLOWING FOR MORE PROFITS!
As i have pointed some months ago the fundamnetals for Oil were bullish despite the technicals did not.
90% of the time when we have a dispute between the fundamentals and the technicals both have right but in what order?
Short term is wise to follow the technicals and long term the fundamentals.The fundamentals do not make mistakes but sometimes maybe they need some time to apply on the technicals.This was the situation for the Oil industry as well.
But the question is what is going to happen now?
Let's see what the technicals have to say..
TECHNICALS OBSERVATIONS
1.We have a Head and Shoulders pattern about to form with the neck line as showed and the critical red area under it.
2.We can see the 2 possible scenarios the bullish one with the green arrows as neck line and critical area remain intact and the bearish scenario
if neck line and critical red suppport zone breaks to the downside.
3.RSI indicator at 50 level does not give us any good information for the the future price action only is warning us that price is currently is at an important crossroad to choose bullish or bearish behaviour.
4.Stochastics are in oversold area and they give us a small hint that we may continue to the upside and may see the 60 level eventually.
5.Price is above the 200EMA and that is favoring the longs.
6.We can also see expect the H&S pattern the ascending channel that it can be used as our last confirmation,after the neck line and the critical red support zone, that the trend has changed and we are heading lower.
THANKS FOR SUPPORT!
KEEP FOLLOWING FOR MORE PROFITS!
Note
H&S pattern is invalid after new high and we saw 60 level after a long time waiting now price is at previous resistance based on price structure and at the top trend line of the ascending channel.Note
Price action very bullish move stop loss under 61,80 to secure the profits.
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