Oil Short Term Sell Opportunity Forming

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Hi Traders! Oil short term sell opportunity is forming at the moment. A detailed analysis of this setup is as follows:

Oil Weekly Chart:

On the weekly chart price has created a inverse head and shoulders pattern which has completed itself and we may now expect the price to repeat this pattern. The neck line of this head and shoulder pattern also acts as a downtrend line for us. On the shorter term we may now expect a correction to happen and the price to move lower towards this downtrend line, retest and move up again.

Oil Short Term Sell Opportunity Forming

 

 

Oil Daily Chart:

On the daily chart we have a special cycle which has completed itself. This means we may now expect a retrace to happen and the price to reach the zone which is created by the 38.2% fibo retrace and 50% fibo retrace of this entire special cycle. The weekly trend line also coincides in the same zone. We also have a bearish divergence that has formed which can be considered as a confirmation for this bearish momentum. Hence we may now expect the price to move lower towards this zone and once it reaches this zone we may then expect it to move higher again.

Oil Short Term Sell Opportunity Forming

 

Oil H4 Chart:

We also have a bearish divergence that has formed on the H4 chart which can be considered as a confirmation for the bearish momentum. If the price breaks below the low shown in the screenshot (61.07), then it could trigger the bearish correction we are looking for. Once that happens, we may start looking for sells.

Oil Short Term Sell Opportunity Forming

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Yours to your success

UFX Broker

Vladimir Ribakov

 

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