Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Oil: Rising Wedge Breakout

Published 08/11/2016, 09:26 AM
Updated 07/09/2023, 06:31 AM

Completed And Broken Out

Oil has Completed and Broken Out of a Rising Wedge (Blue)

Oil has completed and broken out of a rising wedge (blue on chart), retested its bottom, and already dropped to the wedge retrace target.

It could continue straight down from here to a retest of the January low (purple scenario).

But it’s more likely to head up from here to megaphone its way back to a retest of the neckline of the inverse H&S on its daily chart. That neckline is also the top of a potential triangle (blue on chart below).

Oil Inverse Head And Shoulders Vs Triangle

Oil Inverse Head and Shoulders vs Triangle

A move straight down from here would increase the odds that a triangle is forming before a drop to take out the January low. That would be exciting from a trading standpoint, because it would set up a bigger H&S bottom with a much bigger move up out of the new low.

Original post

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.