These 4 charts suggest oil correction coming

4 charts here of WTI, Brent and USDCAD prints high probability patterns that point to oil price correcting further. Any rally could be retracement setup for higher shorts. Plan accordingly.
 

Charts #1 & #2 – M-M price action in down trend mode

  • Month – month WTI and Brent has topped in June.
  • Current price action defined by lower higher lower low which describes down trending price sequence.
  • Rally a retracement only and opportunity to short higher.
Brent daily chart, August 2015 - present

Brent daily chart, August 2015 – present

 

Chart #3 – H1 action similar to 2014, 2015

  • Based on USOIL chart (WTI), price topped in June 2014, May 2015 followed by corrections for the rest of the year.
  • Based on likelihood of A) that oil price is cyclical and B) that history repeats, hopefully we expect to see WTI repeat the pattern.
  • H1 good H2 bad?
USOIL (WTI) daily chart 2014 - present

USOIL (WTI) daily chart 2014 – present | Source: TradingView.com

 

Chart #4 – USDCAD repeating pattern since 7 weeks

  • USDCAD strengthens whenever WTI weakens.
  • 7-week pattern suggests USDCAD gain coming.
  • Green?
USDCAD weekly chart, April 2016 - present

USDCAD weekly chart, April 2016 – present | Source: TradingView.com

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Soh Tiong Hum is Director of TerraSeeds Market Technician Pte Ltd. TerraSeeds is a trading educator in Singapore since 2005.   Soh's Twitter account @sohtionghum was ranked #23 out of The Top 70 Twitter Accounts To Follow In 2015 by MahiFX.   Disclaimer notice: "I do not have a financial advisor's license. I am not qualified by any regulator to give financial advice. I do not know you the reader. Your investment means and motive may be different from me. My posts here are based on observations and meant for education. I am not responsible for for any consequence from your actions."
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