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Oil Starts A Consolidation Or Bottom

Published 08/02/2016, 09:55 AM
Updated 07/09/2023, 06:31 AM

Oil Bounced Off An Exact

Oil Bounced Off an Exact Tag of Its Price Channel Bottom in its Critical Decision Wave

Oil bounced off an exact tag of its blue price channel bottom yesterday after confirming the channel with a new low.

That means it’s likely started a consolidation that will be a bottoming or continuation pattern.

Oil Inverse Head And Shoulders

Oil Inverse Head and Shoulders vs Triangle

A fast megaphone or inverse head and shoulders bottom could complete a right shoulder on the big inverse H&S (red neckline) on oil’s daily chart. A breakout from the big inverse H&S would target the low 70s.

Oil could also bottom here to form a right shoulder triangle on the inverse H&S on the daily chart. That triangle could also break out downwards, morphing the big inverse H&S into a triangle before a new low.

The pink scenario on the top chart is a fast continuation triangle. That’s the least likely scenario.

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