Oil could drop to $75 - HS pattern
At the moment, the price of oil seems confined between its important areas of support and resistance.
I think that contrary to popular belief that oil will go up because of the conflict in the Middle East and the Russian/Ukraine war, I actually think that it is more likely it will start going down.
But of course what I think is irrelevant.
If the Head&Shoulders pattern breaks to the downside and the price stays below the neckline, we will most likely see the price dropping to $75.
If the H&S pattern is invalidated and the price finds support above $85 it will most likely continue going north for some time.
I think that contrary to popular belief that oil will go up because of the conflict in the Middle East and the Russian/Ukraine war, I actually think that it is more likely it will start going down.
But of course what I think is irrelevant.
If the Head&Shoulders pattern breaks to the downside and the price stays below the neckline, we will most likely see the price dropping to $75.
If the H&S pattern is invalidated and the price finds support above $85 it will most likely continue going north for some time.
Comment:
I expect it will bounce at resistance between $77-$78. Might be a good idea to take profits
Comment:
The bounce didn't happen and the price dropped to $75 as projected originally. I think here we can expect serious support. At this speed of bearish pressure I might have to adjust the projection to $74 or whenever we come to contact with the support line.