WTI Near Term Topping Formation
Updated
WTI: USOIL West Texas Intermediate
Unlike on Brent chart there is only one clear and true reverse
head and shoulders evident on the WTI chart (left shoulder
not 'true' on the smaller one, yet so clearly evident on the
Brent chart, please see companion forecast for UKOIL for
comparison).
So this chart is still forecasting longer term upward pressure
to the eventual minimum upside target implied by the RHS at
84.82.
However, in the nearer term WTI continues to flip within the
150 pip forecast range but due to Brent reaching a significant
target point the lower end of the range at 71.30 on WTI is
likley to give way at some point quite soon. If you've been
playing this range over the last week it's holding right now at
150 pips off the high pretty much but not worth buying again
here.
It should fall away to 69.69 and if that then fails to the lower
parallel at 66.81.
Any subsequent failure from here on to hold on to that lower
parallel will tip WTI back into bear territory - can then follow
short again if we see it further out in time.
Unlike on Brent chart there is only one clear and true reverse
head and shoulders evident on the WTI chart (left shoulder
not 'true' on the smaller one, yet so clearly evident on the
Brent chart, please see companion forecast for UKOIL for
comparison).
So this chart is still forecasting longer term upward pressure
to the eventual minimum upside target implied by the RHS at
84.82.
However, in the nearer term WTI continues to flip within the
150 pip forecast range but due to Brent reaching a significant
target point the lower end of the range at 71.30 on WTI is
likley to give way at some point quite soon. If you've been
playing this range over the last week it's holding right now at
150 pips off the high pretty much but not worth buying again
here.
It should fall away to 69.69 and if that then fails to the lower
parallel at 66.81.
Any subsequent failure from here on to hold on to that lower
parallel will tip WTI back into bear territory - can then follow
short again if we see it further out in time.
Note
WTI Daily Chart CloserA series of different continuation patterns during the up-trend so far
A good idea to use Brent chart (earlier upload) as confirmation signal on WTI
Note
Nice trade so far with WTI down 390 pips since yesterday.Look to take half profits at the 66.81 line on Monday and run stop right down to 67.11 on the rest
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