Potential Head & Shoulders Topping Pattern On Crude Oil

With minor resistance just overhead around 38 - 38.30, CL (crude oil futures) could reverse soon & form a RS of a H&S topping pattern. Still some work to be done so just something which I'm monitoring for now. Here's the updated 120-minute chart of CL along with the 120-minute chart posted on Friday, highlighting the two most probably scenarios: 1) A breakdown of the rising wedge (check) followed by a reversal off the top of the target zone (check) or a continued move to the bottom of the zone before a reverse (which didn't occur as the top of the [...]

2017-03-08T21:19:56+00:00 Mar 16, 2016 11:11am|Categories: Gold & Commodities|Tags: , , |2 Comments

Crude Oil Futures Rising Wedge Breakdown

As expected, CL (crude futures) has broken down below the bearish rising wedge pattern that was highlighted in the trading room last week. Should the recent tight correlation between crude prices & the equity indices continue, this breakdown in crude, which followed the recent breakdown in comparable bearish rising wedge patterns on the broad markets, should bring equity prices down along with it. My minimum pullback target zone on CL runs from about 36 - 35.50, as shown on these 120-minute charts (previous & updated):

2017-03-08T21:19:56+00:00 Mar 14, 2016 9:12am|Categories: Gold & Commodities|Tags: , , |2 Comments