Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Oil’s Rising Megaphone Is Bearish

Published 08/31/2015, 01:09 PM
Updated 07/09/2023, 06:31 AM

October Crude Oil Future

Oil's Rising Megaphone (Red) Across Inverse H&S Neckline (Blue) is Likely Setting Up a Megaphone Move to a Lower Low

Oil put in some amazing short squeezes over the past few days, putting in a breakout through the neckline of an inverse H&S on its chart.

However, the breakout has taken the form of a rising megaphone (red on chart) across the inverse H&S neckline, and that is bearish.

Oil would usually form a head and shoulders inside the red rising megaphone before breaking out downwards. That would be a set-up to short for a retrace to at least the lowest touch on the formation bottom.

But the reentry through the inverse H&S neckline suggests oil will be putting in a deeper retrace than that. Oil’s got great odds of making it down to a lower low to morph the inverse H&S into a megaphone bottom (pink).

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.