USOIL: Potential Head and Shoulders Pattern 59.49 to

1 thg 5, 2015

This is not a trade that I am making, but a potential scenario for next week on an intraday basis. 59.36 to 59.49 is a level I am watching on breaching and getting pass to give me confidence that this reference of a potential H&S will be invalidated, and head up pass 59.66. I still expect oil to rally to $61 and then pull back to $59 (a second opportunity to get in).

If not, and this H&S persists, forming a right shoulder, which is where we are now or at 59.49, then the pull back will come early, and that will give me an opportunity to get into OIL around $57.79 or $56.83. I will be watching these levels for opportunities to enter.