Oil head and shoulder ( must read caption)

This chart shows a Head and Shoulders pattern on a Crude Oil Futures (4H) timeframe, which is a bearish reversal signal.

Key Points:

1. Pattern Formation:

The Left Shoulder, Head, and Right Shoulder are clearly marked.

A resistance level is identified around $68.00, where the price previously failed to break higher.



2. Breakdown Confirmation:

Price has broken the neckline (support level), confirming the bearish pattern.

The breakdown suggests further downside movement.



3. Price Targets:

First target: $64.84 (-2.58%)

Second target: $63.66 (-1.89%)

Final target: $63.00 (-1.93%)




Trading Strategy:

Bearish Bias: Traders may look for short opportunities below the neckline.

Stop Loss: Above the right shoulder (~$68.00) to limit risk.

Take Profit: Scaling out near $64.84, $63.66, and $63.00.


This setup aligns with technical analysis principles, indicating a likely continuation of the downtrend. However, traders should monitor volume and external factors like oil supply data and geopolitical events for confirmation.