WTI Oil: Possibility for a 4H Channel Up.

Oil has respected a very clear 4H trend-line of Higher Lows, giving rise to the development of a Channel Up (RSI = 57.601, MACD = 0.260, Highs/Lows = 0.3029, BBP = 0.4580). As long as the supporting Higher Low trend-line holds, the price will be aiming for a new +7.80% Higher High at 55.750, which is the TP in this case. Attention is required, as based on the chart below, there is heavy Resistance at 54.485, created by the neckline of the Inverse Head and Shoulders pattern on 1D. That neckline ranges from 49.35 to 54.485, so if we get a rejection close to the 1D Resistance (54.485) and the 4H Higher Low supporting line breaks, we will need to wait for a test near the 49.35 1D Support before it breaks any higher. This is an equally possible scenario for the short term, so those two are essentially long entry points.


See the Inverse Head and Shoulders pattern below:




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