Oil reversal after bullish Gartley pattern
Oil prices have recovered over the last few days and left us with some interesting formations. The bullish Gartley pattern (although not exact) looks to have completed prior to the rally and the daily reversal candles indicate further upside is now expected. Ideally, the CD leg of the Gartley formation should have extended to at 127% of the AB move but fell short.
Management and risk description
Once the first target is reached, move stop to entry and target higher resistance.
Entry: Buy USOILNOV16 at current levels and on a dip to $44.50/barrel
Stop: A break below $42.50/b
Target: $47.50 and $49.00
Time horizon: 1-3 weeks
— Edited by Clare MacCarthy
Non-independent investment research disclaimer applies. Read more