Oil - Head & Shoulders Formation

15 feb 2021

Oil took quite a spill during the pandemic, but the H&S formation that predicted it was printed on the tape long before the first covid reports came out. I'd like to see price action reject off the dotted red line to form the head in the current price channel. For those who believe that this is a descending wedge that we will eventually break out of, I point you to exhibit B: that nice long shadow in April 2020. Evidence that when the h!t hits the fan, there's not a lot of love for crude oil as a commodity, at least, not at current prices. It's looking like we'll be stuck in this channel for at least the next few years, but oil falling back into the 50's would be great for shipping/transport and other affected industries. Who doesn't love cheap oil?

27 feb 2021

Nota

We're in the sell zone.