FxWirePro: US Oil forms Bearish Butterfly Pattern, good to sell on rallies

• Harmonic Pattern Formed – Bearish Butterfly Pattern.
   
• Potential Reversal Zone (PRZ) - $50.82.
   
•  US Oil is trading higher continuously for past seven trading session and closed at the highest level since June.
   
• US crude oil inventories declined for the five consecutive weeks. It has dropped by 3 million barrels  to  a total of 499.7 barrels in the week.
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• The oil price has rallied around 13% over past six trading session after OPEC announced plans to limit output, its first in eight years.
   
• Technically oil prices have slightly declined after jumping till $49.94 at the time of writing. It is facing strong resistance at $50.82 and any break above will take the oil to next level at $51.59 in the short term.
   
• On the lower side, major support is around $48.25 (daily Kijun-Sen) and nay break below targets $47.70/$46.50.

It is good to sell on rallies around $50.82 with SL around $51.59 for the TP of $47.70/$46.50