With all the news going around that the price of oil is going to soar, we need to look at a price chart. Here we have a tentative head and shoulder pattern, but also a falling wedge (bullish - triangle) indicating that the price might move higher. With this we consider all possible moves the price can make. We will read the candlestick story teller around areas of importance ( break of neckline/ resistance) and then trade the setup with the highest probability.
Comment:
We can see an increase in bearish momentum before neckline break, giving us a signal to go short. Short target 1 was reach with little effort.
Comment:
Price now almost at Target 2 area. Always consider what the price can do and trade the setup with the highest probability. In this trade it was the Head and Shoulder pattern.