UKOIL: Bearish divergence on RSI and minor resistance overhead
Anticipating price action rejecting previous resistance at 67.00 given the bearish diversion visible on the RSI and MACD readings, as price squeezes into a rising wedge. If analysis is correct, we should see a break of trend line support, given the lower highs in RSI, and move down to 64.70 the next level of meaningful support. If target 1 (64.70) is met, the next level of major support is 63.00 the 23.6% fib and previous structure highs.
A close of a 4hr candlestick above 67.50 invalidates this analysis, which leaves a healthy risk to reward ratio for short entries in the 66.75 to 67.00 range.
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Drito
A close of a 4hr candlestick above 67.50 invalidates this analysis, which leaves a healthy risk to reward ratio for short entries in the 66.75 to 67.00 range.
Follow me on instagram @ndrito
Happy trading!
Drito