The weekly chart clearly shows failure at the inverse head and shoulder neckline last week.
More importantly, the follow through has been bearish so far, which makes matters worse for the oil bulls.
A bearish weekly close below $46.25, which marks the confluence of the weekly 100-MA and rising trend line drawn from Feb low and Aug low, would signal a major trend reversal.
On the higher side, only a weekly close above the neckline would signal the continuation of the larger uptrend.
More importantly, the follow through has been bearish so far, which makes matters worse for the oil bulls.
A bearish weekly close below $46.25, which marks the confluence of the weekly 100-MA and rising trend line drawn from Feb low and Aug low, would signal a major trend reversal.
On the higher side, only a weekly close above the neckline would signal the continuation of the larger uptrend.
