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Inverted Head And Shoulder In WTI?

WTI TECHS
  • Thursday’s rebound in WTI from the session low has defined $62.43 as a key short-term support.
  • The rebound highlights potential for a near-term recovery that would allow a recent oversold condition to unwind.
  • Supporting this is a possible bullish reversal pattern that is forming on the 60-min chart. An inverted head and shoulders pattern (if correct) is close to breaching its neckline, which would confirm the pattern.
  • A break would signal potential for a short-term recovery towards resistance at $71.22, Nov 30 high and $75.23, the 50-day EMA.
  • On the downside a break of $62.43 would confirm a resumption of the downtrend. Initial support is the low of the right shoulder at $65.60, Friday’s low.
  • Note that the reversal pattern is only confirmed once the neckline is breached. Watch resistance at $69.22, the Dec 3 high.

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