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Crude Oil Tests 2016 Trendline before Inventories

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Crude Oil Tests 2016 Trendline before Inventories
Crude Oil Tests 2016 Trendline before Inventories

Chart Prepared by Jamie Saettele, CMT

DailyFX Trading Guides and Forecasts

-“The possible yearlong head and shoulders pattern (lows in August 2015, February 2016 and August 2016) is intriguing but crude just printed a YTD high and pulled back sharply. Watch for support at 49 (former high) but failure to hold that level risks a drop into the former support line (in blue) near 46.” Crude is testing the mentioned level (46). The current level is huge as a break below would indicate a break of the 2016 uptrend (since February). The 200 day average and a former floor near 43 would be next in line from a trading standpoint.


original source

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