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Oil In Critical Decision Wave Of Price Channel

Published 04/27/2016, 10:28 AM
Updated 07/09/2023, 06:31 AM

Crude Oil Chart

Oil is in the Critical Decision Wave of its Pink Price Channel

Oil is in the critical decision wave of its 3-month price channel (pink on chart) on the daily. That’s the wave where a price either starts a top or sets up a breakout into a melt-up.

Usually if a price were going to break out into the melt-up, it would have moved to the channel top quickly, instead of getting bogged down as oil has. But with everything waiting for the FOMC announcement, a breakout into a melt-up (purple scenario) can’t be ruled out.

However, oil is much more likely to return to 35 and start a new megaphone there (blue scenario), ultimately forming a triangle across 35. The triangle could break out in either direction, but it’s more likely to break out downwards later this summer for a trip to one final lower low.

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