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 i…
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.
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
