### **Heating Oil (HO) – Head & Shoulders Breakdown, More Downside Ahead?**
Heating Oil (HO) has formed a **Head and Shoulders** pattern on the **15-minute chart**, signalling a potential **bearish reversal**. The breakdown of the **neckline** suggests that further downside is likely.
### **Key Observations:**
✅ **Head & Shoulders Breakdown** – The price has completed the right shoulder and is breaking lower.
✅ **Bearish Targets** – Possible move towards the **2.218** support area, with extended targets even lower.
✅ **Declining Demand Due to Warmer Weather** –
- Warmer temperatures reduce the need for heating oil as residential and commercial heating demand drops.
- Weather forecasts indicate above-average temperatures, limiting short-term demand.
- Lower demand from key regions contributes to downward pressure on prices.
### **Trading Plan:**
📉 **Bearish Bias** – Short opportunities on pullbacks, targeting the marked demand zones.
📊 **Risk Management** – Stop-loss above the right shoulder to protect against invalidation.
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Heating Oil (HO) has formed a **Head and Shoulders** pattern on the **15-minute chart**, signalling a potential **bearish reversal**. The breakdown of the **neckline** suggests that further downside is likely.
### **Key Observations:**
✅ **Head & Shoulders Breakdown** – The price has completed the right shoulder and is breaking lower.
✅ **Bearish Targets** – Possible move towards the **2.218** support area, with extended targets even lower.
✅ **Declining Demand Due to Warmer Weather** –
- Warmer temperatures reduce the need for heating oil as residential and commercial heating demand drops.
- Weather forecasts indicate above-average temperatures, limiting short-term demand.
- Lower demand from key regions contributes to downward pressure on prices.
### **Trading Plan:**
📉 **Bearish Bias** – Short opportunities on pullbacks, targeting the marked demand zones.
📊 **Risk Management** – Stop-loss above the right shoulder to protect against invalidation.
🚨 **Please LIKE 👍, FOLLOW ✅, SHARE 🙌 and COMMENT ✍ if you enjoy this idea! Also, share your ideas and charts in the comments section below! This is the best way to keep it relevant, support us, keep the content here free, and allow the idea to reach as many people as possible.**
🚀🔥
Trade active
going to targets Trade closed: stop reached
Note
i really hates when they stopped me out and then goes to the targets im re enter again
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.