Inverted Head and shoulders planOil orice action as I follow it in the WTI has shot up in prices and discovered not only fib resistance zones but horizontal resistance as well around 41-42 price range. Nothing wrong with that except that USDCAD hasn’t followed oil’s price action. Instead it has carved out a very nice inverted head and shoulders pattern . Should the neckline break then we should see 1.33-1.3350 rather quickly. No wonder then I’ve got my first TP zone there. But I also can see a risk off in stocks developing and so a push higher to the 200 day SMA around 1.35 could also be targeted. Personally I like the 89 SMA shown here on my chart in orange.
On the down side. With a clear pattern such as this it could just explode by big banks pushing the stop hunt tactics on very clear patterns. Funny how that really happens.
I’m leaning on on the pattern build and eventually breaking higher just because of the for mentioned WTI price action. I’ve been building a core all week and taken some quick hit profits on bounces to and above 1.32 while also increasing my position with small average entry prices.
As always plan your trade and trade your plan. This isn’t trade advance but my personal trade and planed trade. Use it for education or if you plan to join in on the trade, the risk is all yours.
All the best to everyone.
