Oil is at a steep ascending trend line in a rising wedge. Watch for a breakdown of this level.
Supports below include $45.5 with the .236 fib level, $42.00 at the .382 fib, $40.00 because it is a round number, and the 50% retrace at approximately $39.00. Note this is purely technical and the fundamentals of oil do not suggest oil can or will remain below $40 per barrel.
Yeah I was like whats up w/ this diamond pattern i'm seeing good eye
veryevilone
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Nice chart. However its safe to assume both lines will break. First of all the one in the candle chart is way too steep. They dont last. And the line on the indicator is only half the story. You can traw a line on top, and then you have a triangle where the indicator entered from the top. And triangles are usually always continuation patterns, so the price will exit below. Have a nice day. Last but not least when you look at indicator and candlechart you can see there is a Bearish divergence.
zkstonks
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Both lines will break. But it's a matter of when. It is not safe to assume one will break immediately if the other does. As you mention, the line in the candle chart is absolutely too steep. I do expect it to break. However, the RSI support line could hold at the $45.5 fib support. As per the rest of your comment, it's absolutely accurate. This chart is in no way totally representative of the technical bear case. But, on a different note, I believe that the bear case is mostly technical and not fundamental, as I stated in the chart description.
veryevilone
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+1
Ive made this chart which predicts that next week the channel will break down and it could get ugly since the channel is kind of stealth. I dont think most traders see it so it will create a small panic when it breaks.