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.
— Soh tiong hum (@Sohtionghum) August 15, 2016
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?
Chart #4 – USDCAD repeating pattern since 7 weeks
- USDCAD strengthens whenever WTI weakens.
- 7-week pattern suggests USDCAD gain coming.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’.
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