? Oil Tests Fibonacci Resistance and H&S Pattern ?

Hi traders,

Oil is approaching key Fibonacci retracement levels which could act as resistance. A bearish turn seems imminent unless price manages to break above the previous top.

Oil

4 hour

Oil is now building a bull flag chart pattern (purple lines). Price could break above the flag for a bullish breakout towards the Fibs of wave 2 (pink) to complete a wave 5 (blue). A bearish bounce however is expected at the Fibs and a bearish breakout could confirm the reversal. The wave 2 (pink) is invalidated once if price breaks above the 100% Fib.

Day

Oil could be building a potential head and shoulders reversal chart pattern (purple boxes). The break below the support trend lines would indicate a break below the neck line and increase the chance of a bearish breakout and reversal.

Week

Oil could be completing a wave 4 because price did not enter into the price territory of wave 1, however a break above the red line would invalidate this wave pattern. A bearish breakout could confirm it or make it more likely.

Good trading,
Chris Svorcik
Elite CurrenSea