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
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.