Simply put, we have a nice bearish AB=CD Harmonic Pattern.
On an hourly chart we have a bearish engulfing candle right at the 2.618 BC projection - completing the Potential Reversal Zone (PRZ)
Classically, Take Profits at 38.2% and 61.8% of the AD move.
Warning:
Notice that the downtrend shown might become resistance so make sure to tighten your stops at that level and perhaps take some profits.
On a macro view:
Oil prices have been rising on hopes that president elect Biden simulates the economy - thus increasing demand for oil.
On the other hand, this fast rise in oil prices might also put back online oil wells - thus increasing supply - which should lower prices.
Happy Trading!
USOIL
On an hourly chart we have a bearish engulfing candle right at the 2.618 BC projection - completing the Potential Reversal Zone (PRZ)
Classically, Take Profits at 38.2% and 61.8% of the AD move.
Warning:
Notice that the downtrend shown might become resistance so make sure to tighten your stops at that level and perhaps take some profits.
On a macro view:
Oil prices have been rising on hopes that president elect Biden simulates the economy - thus increasing demand for oil.
On the other hand, this fast rise in oil prices might also put back online oil wells - thus increasing supply - which should lower prices.
Happy Trading!
USOIL