A huge head and shoulder bottom is formed from 2015-2017. Now oil price moves up and breaks the neckline. It means that if the pattern is not breaked, the oil will have a bullish way to go. A lot of institution expect OPEC meeting in Nov will extend the expiry data of arrangement;Saudi anti-corruption operation;----all of this contributes to oil price action now.
I am waiting for the long oppournity, I hope the price can pull back to the neckline. For the target, I won't expect oil can reach 85 USD. I draw a potential butterfly, B point is 78.6% retracement of XA leg. The the final potential reverse zone is expected to be the 1.272*XA and 2.618*BC. Watch the price action around 70, it's a support&resistance area from 2010-2012. This is my target
I am not using harmonic pattern to trade in this chart, I am using it to find the target area of bullish trend. I trade oil by head and shoulder bottom in this time
But do you have information about the volumes?
Because above one day frame chart, I don not see the volumes.. strange..
However , if it is h&s you should notice a decrease in volumes along pattern formation on weekly time frame untill the breakout, is it the case? Could you share a snapshot of the volums along with prices please?
Thanks advance !