Oil attacks the neck of the Inverse Head ans Shoulders pattern - Technical Analysis - 28-01-2016
Crude oil prices kept rising in the intraday levels, with the support of the SMA50, reaching thereafter the neck line of that positive pattern forming currently, the Inverse Head and Shoulder pattern that is contradictory to the main downward trend in the medium and short terms as shown in the attached chart, along with an influx of negative signals from relative power indicators like the Stochastic as shown below the chart.
Therefore we reaffirm our forecast of a rise in crude prices, but first they'll have to breach that neck line to confirm the pattern, then targeting directly afterwards the resistance of 35.35.
Trend
Bullish