Inverse Head and Shoulders Building in Crude!
Amidst the current weakness in crude oil prices, an intriguing technical pattern is emerging—the inverse head and shoulders formation. Renowned for signaling bullish reversals, this pattern is unfolding against a backdrop of market sentiment reflecting concerns about weakened demand due to a slowing consumer.
The shoulders of the inverse head and shoulders pattern play a pivotal role as critical support levels, indicating a potential turnaround in crude oil prices. Currently finding support in this region, the market appears poised at a crucial juncture, underscoring the significance of this technical formation.
Investors and traders closely monitor a key support zone ranging between 74.75-75.00. A break and close below this level could signify further downward momentum, potentially leading to a retest of the lows witnessed on November 16th.
To witness further upside, crude oil would need to sustain a break and close above 78.00 before retesting 80.00, where 80.00 represents significant psychological resistance. This price action would confirm a reversal in the bearish trend observed lately.
Looking ahead, potential catalysts for higher crude oil prices include OPEC's production decision on November 26th. Additionally, the possibility of interest rate cuts occurring sooner than anticipated can significantly influence market dynamics, as easier financial conditions could stimulate demand for travel and transportation.
Check out CME Group real-time data plans available on TradingView here: tradingview.com/cme/
Disclaimers:
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs tradingview.com/cme/
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
The shoulders of the inverse head and shoulders pattern play a pivotal role as critical support levels, indicating a potential turnaround in crude oil prices. Currently finding support in this region, the market appears poised at a crucial juncture, underscoring the significance of this technical formation.
Investors and traders closely monitor a key support zone ranging between 74.75-75.00. A break and close below this level could signify further downward momentum, potentially leading to a retest of the lows witnessed on November 16th.
To witness further upside, crude oil would need to sustain a break and close above 78.00 before retesting 80.00, where 80.00 represents significant psychological resistance. This price action would confirm a reversal in the bearish trend observed lately.
Looking ahead, potential catalysts for higher crude oil prices include OPEC's production decision on November 26th. Additionally, the possibility of interest rate cuts occurring sooner than anticipated can significantly influence market dynamics, as easier financial conditions could stimulate demand for travel and transportation.
Check out CME Group real-time data plans available on TradingView here: tradingview.com/cme/
Disclaimers:
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs tradingview.com/cme/
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
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