With all the news going around that the price of oil is going to soar, we need to look at a price chart. Here we have a tentative head and shoulder pattern, but also a falling wedge (bullish - triangle) indicating that the price might move higher. With this we consider all possible moves the price can make. We will read the candlestick story teller around areas of importance ( break of neckline/ resistance) and then trade the setup with the highest probability.
Note
We can see an increase in bearish momentum before neckline break, giving us a signal to go short. Short target 1 was reach with little effort.Note
Price now almost at Target 2 area. Always consider what the price can do and trade the setup with the highest probability. In this trade it was the Head and Shoulder pattern.
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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.