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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

Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.

“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.

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