U.S. Oil - Bearish Shark
Updated
Hey guys, here we have another bearish shark on our hands.
Similarly to the GBP/USD trade, the daily chart has found resistance and is re-testing in the form of a double top. Within the re-test we can find a bearish shark formation. Price has already hit our D point but I am now monitoring the 4 hour and 1 hour charts for an entry.
I'm currently simultaneously monitoring U.S. Oil and the Canadian Dollar. The value of the Canadian Dollar relies heavily upon the value of oil since this is their main export, so should the value of oil drop, the CAD more often than not follows suit. There's currently a potential bullish 3-drives on the USD/CAD (see below) which, indicating a weaker Canadian Dollar, would compliment this setup on Oil. Another idea containing full analysis will be posted for the 3-drives.
Shark ratios are as follows:
C = 1.13-1.618
D = 1.618-2.24
X to D = 0.886-1.13
Similarly to the GBP/USD trade, the daily chart has found resistance and is re-testing in the form of a double top. Within the re-test we can find a bearish shark formation. Price has already hit our D point but I am now monitoring the 4 hour and 1 hour charts for an entry.
I'm currently simultaneously monitoring U.S. Oil and the Canadian Dollar. The value of the Canadian Dollar relies heavily upon the value of oil since this is their main export, so should the value of oil drop, the CAD more often than not follows suit. There's currently a potential bullish 3-drives on the USD/CAD (see below) which, indicating a weaker Canadian Dollar, would compliment this setup on Oil. Another idea containing full analysis will be posted for the 3-drives.
Shark ratios are as follows:
C = 1.13-1.618
D = 1.618-2.24
X to D = 0.886-1.13
Note
Here is a glance at the USD/CAD potential set up. A drop in price would also indicate a weakening Canadian Dollar! I would be looking at price reversing at round the 0.786 retracement level.
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