After my initial post on the inverse H&S pattern the price of UKOIL has been recovering. Currently we can see fibonacci retracement providing resistance at 50% and ascending trendline showing support. Also we can notice on RSI9 that the price has been bouncing of level 50 and keeping above that. This is a bullish sign.
So looking at the formation of the resistance and support we can see a ascending triangle formation being formed. Normally this is a continuation pattern which would suggest the price will keep climbing up. However the resistance level hasn't been tested too many times yet and thus this doesn't quite fill all the requirements for the pattern. So with this info there would be a bias towards suggesting long but predicting the direction won't be necessary as I will shortly explain. I'm not too eager to predict which way the price will break but rather because of the price being squeezed I'm looking for a breakout. That is if the price breaks and closes above the 68.5 resistance I'd be looking to long and if break below the support then entering short. I'd even say because of the squeeze at this point it is not even required to predict which way the price will break but rather just enter according to the breakout. There isn't much profit to be gained by entering a trade in either direction before a breakout because of the squeeze being so tight at this point.
So take entry when the price breaks out of the formation and put stop loss above/below the other resistance/support of this formation.
So looking at the formation of the resistance and support we can see a ascending triangle formation being formed. Normally this is a continuation pattern which would suggest the price will keep climbing up. However the resistance level hasn't been tested too many times yet and thus this doesn't quite fill all the requirements for the pattern. So with this info there would be a bias towards suggesting long but predicting the direction won't be necessary as I will shortly explain. I'm not too eager to predict which way the price will break but rather because of the price being squeezed I'm looking for a breakout. That is if the price breaks and closes above the 68.5 resistance I'd be looking to long and if break below the support then entering short. I'd even say because of the squeeze at this point it is not even required to predict which way the price will break but rather just enter according to the breakout. There isn't much profit to be gained by entering a trade in either direction before a breakout because of the squeeze being so tight at this point.
So take entry when the price breaks out of the formation and put stop loss above/below the other resistance/support of this formation.
