Head & Shoulders Breakdown, More Downside Ahead?### **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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