At the start of December, we were following Oil at triangle resistance and were looking at the level either breaking out or holding.
There was a bit in it for the day traders if you were short on that head and shoulders, while if you’re a longer term trader, the higher time frame resistance zone is still in play as you can see on the weekly chart:
The weekly shows the daily triangle that we were looking to trade in that previous blog post, but it’s the confluence of this horizontal resistance level that adds weight to the shorting argument and is the biggest reason why we haven’t seen any momentum even though price has technically broken out of the triangle.
Zooming into the hourly chart and I wanted to highlight the gap that we have in play. Just another target for shorts to look at.
I’ve also drawn in the previous gap which filled and then price used that level as support/resistance on both sides. Traders pay attention to these levels.
Dane Williams – @VantageFX
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