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FxWirePro: US Oil forms bearish Butterfly pattern, good to sell on rallies

  • Harmonic pattern formed – Bearish Butterfly pattern
     
  • Potential reversal Zone (PRZ) - $53.35 (161.8% retracement of $50.40 and $45.84).
     
  • WTI crude oil has shown a good jump after breaking high of $51.09 made on Sep 20th 2017 and jumped till $52.40. It is currently trading around $51.97.

     
  • The commodity has formed bearish Butterfly pattern and potential reversal zone is around $53.35.  Any violation above that level confirms bullish continuation. The near term resistance is around $52.40.
     
  • On the lower side, major near term support is around $51.23 (4H Kijun-Sen) and any break below will drag the commodity down till $50.85 (20- 4H MA)/$50/$48.97 (50% retracement of $45.57 and $52.41).

It is good to sell on rallies around $52.25-30 with SL around $53.35 for the TP of $50.90/$50.

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