US Oil forms Head and Shoulder pattern, good to sell on rallies
Pattern formed – Head and Shoulder pattern
Major resistance - $50.49 (200- HMA)
US Oil has formed head shoulder pattern on the hourly chart .The commodity has broken major neck line support at $49.34 and declined till $49.14 at the time of writing.
On the lower side, any break below $49.34 will drag the commodity down till $48.40 (38.2% retracement of $42.72 and $51.91)/$47.80 (200- 4 H MA).
The minor resistance is around $49.52 (21- H MA) and any break above targets $50/$50.49 (200- H MA).
It is good to sell on rallies around $49.50-$49.55 with SL around $50 for the TP of $48.40/$47.80
Major resistance - $50.49 (200- HMA)
US Oil has formed head shoulder pattern on the hourly chart .The commodity has broken major neck line support at $49.34 and declined till $49.14 at the time of writing.
On the lower side, any break below $49.34 will drag the commodity down till $48.40 (38.2% retracement of $42.72 and $51.91)/$47.80 (200- 4 H MA).
The minor resistance is around $49.52 (21- H MA) and any break above targets $50/$50.49 (200- H MA).
It is good to sell on rallies around $49.50-$49.55 with SL around $50 for the TP of $48.40/$47.80