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 201…
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.