Brent Crude Oil 1-day classic patterns
Updated
Q: What has the highest probability of occurring?
Since February 2021 price has been stabilising on $65 per barrel.
There is a combination of 2 classic patterns forming at 65.00 support.
The inverse head & shoulders, which is in the process of forming the right shoulder, is currently invalid.
This pattern projects 85.25 as the target.
The double bottom, having recently tested and rejected 65.00, would need to breakout from 76.50 to be validated.
This pattern projects 52.00 as the target.
Objectively looking at 65.00 support the two high volume bars appear to be putting the weight in favour of the formation of the double bottom following the ~15% correction.
Since the double bottom is not validated so the current position is neutral with a bias in favour of the uptrend continuing.
It is worth paying attention to the high of the left shoulder at ~72.00 and how the bulls and bears interact as validation of the double bottom is required at 76.50
Since February 2021 price has been stabilising on $65 per barrel.
There is a combination of 2 classic patterns forming at 65.00 support.
The inverse head & shoulders, which is in the process of forming the right shoulder, is currently invalid.
This pattern projects 85.25 as the target.
The double bottom, having recently tested and rejected 65.00, would need to breakout from 76.50 to be validated.
This pattern projects 52.00 as the target.
Objectively looking at 65.00 support the two high volume bars appear to be putting the weight in favour of the formation of the double bottom following the ~15% correction.
Since the double bottom is not validated so the current position is neutral with a bias in favour of the uptrend continuing.
It is worth paying attention to the high of the left shoulder at ~72.00 and how the bulls and bears interact as validation of the double bottom is required at 76.50
Note
EDIT:The inverse head & shoulders pattern project 52.00 as the target.
The double bottom projects 85.25 as the target.
Note
A close above 76.50 confirms the double bottom.
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