POSSIBLE early stage FALLING WEDGE in CRUDE
We may have the early formation of a falling wedge on crude oil.
The 2016 pivot low came into play on this selloff as the initial bounce area.
Once below - that level has provided intermediary resistance.
We are getting SLIGHTLY LOWER LOWS which is forming a descending support - as we know, this is one of the toughest types of support to get a
FLUSH with conviction through due to the way order flow sits around descending support with many traders having already stopped out of their longs
due to having stops placed at the previous pivot low - reducing the order flow that would come in if that support level ultimately breaks.
The price action is leaning towards the formation of this falling wedge - keep on watch for a possible short off the upper region or perhaps a break out and possible
retest from the upside if buying comes in as Corona fears ease off.
Hope this alternate perspective on the chart helps.
Be well - thank you to the trading community for taking the time to view!!!
xeenos trading
The 2016 pivot low came into play on this selloff as the initial bounce area.
Once below - that level has provided intermediary resistance.
We are getting SLIGHTLY LOWER LOWS which is forming a descending support - as we know, this is one of the toughest types of support to get a
FLUSH with conviction through due to the way order flow sits around descending support with many traders having already stopped out of their longs
due to having stops placed at the previous pivot low - reducing the order flow that would come in if that support level ultimately breaks.
The price action is leaning towards the formation of this falling wedge - keep on watch for a possible short off the upper region or perhaps a break out and possible
retest from the upside if buying comes in as Corona fears ease off.
Hope this alternate perspective on the chart helps.
Be well - thank you to the trading community for taking the time to view!!!
xeenos trading
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