At the moment, the price of oil seems confined between its important areas of support and resistance.
I think that contrary to popular belief that oil will go up because of the conflict in the Middle East and the Russian/Ukraine war, I actually think that it is more likely it will start going down.
But of course what I think is irrelevant.
If the Head&Shoulders pattern breaks to the downside and the price stays below the neckline, we will most likely see the price dropping to $75.
If the H&S pattern is invalidated and the price finds support above $85 it will most likely continue going north for some time.
I think that contrary to popular belief that oil will go up because of the conflict in the Middle East and the Russian/Ukraine war, I actually think that it is more likely it will start going down.
But of course what I think is irrelevant.
If the Head&Shoulders pattern breaks to the downside and the price stays below the neckline, we will most likely see the price dropping to $75.
If the H&S pattern is invalidated and the price finds support above $85 it will most likely continue going north for some time.
Note
I expect it will bounce at resistance between $77-$78. Might be a good idea to take profitsNote
The bounce didn't happen and the price dropped to $75 as projected originally. I think here we can expect serious support. At this speed of bearish pressure I might have to adjust the projection to $74 or whenever we come to contact with the support line.
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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.