Oil head and shoulder ( must read caption)
This chart shows a Head and Shoulders pattern on a Crude Oil Futures (4H) timeframe, which is a bearish reversal signal.
Key Points:
1. Pattern Formation:
The Left Shoulder, Head, and Right Shoulder are clearly marked.
A resistance level is identified around $68.00, where the price previously failed to break higher.
2. Breakdown Confirmation:
Price has broken the neckline (support level), confirming the bearish pattern.
The breakdown suggests further downside movement.
3. Price Targets:
First target: $64.84 (-2.58%)
Second target: $63.66 (-1.89%)
Final target: $63.00 (-1.93%)
Trading Strategy:
Bearish Bias: Traders may look for short opportunities below the neckline.
Stop Loss: Above the right shoulder (~$68.00) to limit risk.
Take Profit: Scaling out near $64.84, $63.66, and $63.00.
This setup aligns with technical analysis principles, indicating a likely continuation of the downtrend. However, traders should monitor volume and external factors like oil supply data and geopolitical events for confirmation.
Key Points:
1. Pattern Formation:
The Left Shoulder, Head, and Right Shoulder are clearly marked.
A resistance level is identified around $68.00, where the price previously failed to break higher.
2. Breakdown Confirmation:
Price has broken the neckline (support level), confirming the bearish pattern.
The breakdown suggests further downside movement.
3. Price Targets:
First target: $64.84 (-2.58%)
Second target: $63.66 (-1.89%)
Final target: $63.00 (-1.93%)
Trading Strategy:
Bearish Bias: Traders may look for short opportunities below the neckline.
Stop Loss: Above the right shoulder (~$68.00) to limit risk.
Take Profit: Scaling out near $64.84, $63.66, and $63.00.
This setup aligns with technical analysis principles, indicating a likely continuation of the downtrend. However, traders should monitor volume and external factors like oil supply data and geopolitical events for confirmation.
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t.me/ForexExpert377
🔥 What You’ll Get:
✅ Daily Forex signals with high accuracy
✅ Technical & fundamental analysis
✅ Risk management tips to protect your capital
📩 Join now and start winning
t.me/ForexExpert377
🔥 What You’ll Get:
✅ Daily Forex signals with high accuracy
✅ Technical & fundamental analysis
✅ Risk management tips to protect your capital
📩 Join now and start winning
t.me/ForexExpert377
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.