My wife said i should spend less time around her sisters ( ive told her this leaky tap is a bugger to fix.. its been dripping for 2 months now and i still cant fix it ) ;p Anyway enough about my marriage issues and lets take a look at oil... After a couple of days of bearish movement from market open this week price finally went into some consolidation today...
Oil has broke 2 key support levels today and shows no sign of slowing down, we are on a slight pullback at the moment and price has already touched our resistance level ( purple line ) we can see a retest of this level again before price makes further bearish movement and hits our next key level that has been used as previous strong resistance. You can enter this...
USOIL is unable to push higher up. It has a weak foundation as support and we can expect it to drop further down below to find a good support before continuing its long term bullish trend, if still strong. Leave your SL above the last high for enough space to move before the breakdown below.
In case of Evening Stars in 72 percent of cases trend reverse. Ranks 10th among reversal patterns. Here we have it off an important monthly level, also off upper Bollinger band. Target after Fib extension (coincides with Bollinger band and daily Fib level).