Oil prices are most probably forming a bearish pattern familiar to most technical analysts. The head and shoulder pattern could be in the process of being formed right now with the right shoulder left to complete the first part. The neckline seems to be at 29.50$ and a break below that level could trigger a bigger sell off towards 24$.
Still this is a premature assumption and even if we reach the neckline there is no guarantee from this pattern that prices are going to break downwards. However taking into consideration the longer-term trend in Oil prices and the fact that the rise from 27.50$ has a corrective three wave form, the chances are in favor of the resumption of the downtrend. A higher low near 31$ and an upward reversal break above 33$ will however be a bullish scenario/pattern that we will keep an eye on.
My previous bullish pattern of the inverted head and shoulders pattern that was targeting 38$ was canceled once price broke back down below the neckline of the inverted head and shoulders pattern. Trading2day subscribers were informed in real-time and right on time that I exited half of my longs at 33.625$ and the rest at 32.70$ (initially bought at 32.80$ and 32.04$). If you want to receive my trades and orders placed in real-time under real market conditions, you can become a subscriber for only 34.95$ for one month.
As always, thank you for taking the time to read my latest post.