Hi Traders!
Our USOIL range zone looks like it is on the brink of a possible breakout. A triangle pattern has now formed on the daily chart, and a recent lack of bullish momentum tells us that we may be breaking to the downside.
One thing to note, however, is that there was a rare dragonfly doji candle pattern, which is a candle pattern that you must watch out for as this shows indecision. In this case, the dragonfly doji candle formed when there was a push to the downside, so there was some hesitancy from traders to continue pushing down.
With this setup, we are looking for strong confirmation price action signals for entry. We are looking for a strong momentum break below the support line of the triangle, a strong momentum break below the low of the dragonfly doji candle, and a strong momentum break below the range zone support level at 66.88 (we MUST get all three). If we get all of this, then a good target would be near the key 63.61 level, as there is strong support there.
Please remember to like, follow, and comment.
We appreciate your support.
BluetonaFX
Our USOIL range zone looks like it is on the brink of a possible breakout. A triangle pattern has now formed on the daily chart, and a recent lack of bullish momentum tells us that we may be breaking to the downside.
One thing to note, however, is that there was a rare dragonfly doji candle pattern, which is a candle pattern that you must watch out for as this shows indecision. In this case, the dragonfly doji candle formed when there was a push to the downside, so there was some hesitancy from traders to continue pushing down.
With this setup, we are looking for strong confirmation price action signals for entry. We are looking for a strong momentum break below the support line of the triangle, a strong momentum break below the low of the dragonfly doji candle, and a strong momentum break below the range zone support level at 66.88 (we MUST get all three). If we get all of this, then a good target would be near the key 63.61 level, as there is strong support there.
Please remember to like, follow, and comment.
We appreciate your support.
BluetonaFX
