Possible Head and Shoulders pattern in Oil

LAMDA-METKA-EXAE-ELPE
October 14, 2016
Νέα θέση
October 14, 2016

Oil price has been trading around $49-51.50 levels for the last couple of sessions with several bearish divergence signals by the oscillators and currently forming a possible Head and Shoulders pattern with a neckline around the $49.70 level.

oil

I expect Oil to break down and move towards the low 40’s as I see overbought signals with bearish divergence implying that at current levels I should be short. I already have short positions opened and will be looking to add if we have a confirmed break down below the neckline. On a daily basis we also have warning signals by the oscillators and I would expect a pull back towards the Ichimoku cloud near $45 at least.

oil

Thank you for taking the time to catch up on my thinking.

Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.