Inverse Head and Shoulders in Oil

4 wrz 2020

Oil is forming an inverse head and shoulders, after a huge selloff which finally broke the range it had been establishing over the past week. That range was unusually low for oil and we anticipated a breakout at some point regardless. In a previous briefing we alerted you as to the psychologically significant $40 level. The head of this this inverse H&S came very close to this level before retracing to form the rest of the pattern. There is a vacuum zone above back to the lower bound of the previous range at $42.48. The Kovach OBV is still bearish but it appears to be picking up. The Kovach Chande is quite bullish, which means a breakout could be near. Watch lower levels for exit if we are wrong.