John Jagerson, CMT, CFA, was featured on Investopedia last Tuesday with an article about the possible short-term direction of oil in light of a failed head-and-shoulders pattern on its chart.
"Failed patterns have a high likelihood of moving in the opposite direction of the original breakout. There's no guarantee that this will happen for oil, but if the uptrending level that served as support for the left and right shoulders of the reversal pattern can't hold at $51.50, traders should watch for oil to retest its late-December 2018 lows," wrote Jagerson, substantiating this argument with the chart above.
"It appears that commodity traders are viewing the move by OPECto reach out and form a loose union with Russia and other former Soviet republics as a confirmation that oil demand is not keeping up with oil production," he added.
Read the full article here: Oil Fades as Stocks Soar.