Oil In Critical Decision Wave Of Price Channel
Trader Moe | Apr 27, 2016 10:28AM ET
Oil is in the Critical Decision Wave of its Pink Price Channel
Oil is in the critical decision wave of its 3-month price channel (pink on chart) on the daily. That’s the wave where a price either starts a top or sets up a breakout into a melt-up.
Usually if a price were going to break out into the melt-up, it would have moved to the channel top quickly, instead of getting bogged down as oil has. But with everything waiting for the FOMC announcement, a breakout into a melt-up (purple scenario) can’t be ruled out.
However, oil is much more likely to return to 35 and start a new megaphone there (blue scenario), ultimately forming a triangle across 35. The triangle could break out in either direction, but it’s more likely to break out downwards later this summer for a trip to one final lower low.
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