Oil compressing into the corner ready to breakout

17 Tem 2020

USOil compressing hard into the triangle formation, which could see it play out as a continuation or a reversal pattern. After being rejected at the 61.8 Fibs with multiple bearish divergences and OBV flattening, I’m leaning more towards breaking to the downside. Not usually one to use fundamentals although OPEC have recently said they were going to begin to increase supply and a lot of countries are beginning to experience a second wave of Covid-19 forcing lockdowns again would mean a lot less people driving and could possibly cause something similar to last time…

Trade set up is as follows:
Entry: $40
Stop Loss: $41.50 – Just above that fibs level
Target : $33.50 – Unless some big bearish engulfings occur