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Double Bottom on Daily Chart of WTI Crude Oil as of 2019-06-16

Summary:
A double bottom pattern has formed on the daily chart of WTI crude oil. The pattern forms after prices test a support level and fail to break it. It is a reversal pattern, which promises a rally after a period of a downside movement. On the present chart, the yellow lines form a channel. The bottom line shows the support level, which prices failed to breach. The top line is situated at the high of the rally, which happened after the first test of the support level. The cyan line is plotted at the 10% of the channel’s width above the top border of the channel and offers an entry point for long positions for those traders, who are willing to make bullish bets on crude. The green line is placed at the channel’s width above the top border of the channel and provides a profit-taking objective

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A double bottom pattern has formed on the daily chart of WTI crude oil. The pattern forms after prices test a support level and fail to break it. It is a reversal pattern, which promises a rally after a period of a downside movement.

On the present chart, the yellow lines form a channel. The bottom line shows the support level, which prices failed to breach. The top line is situated at the high of the rally, which happened after the first test of the support level. The cyan line is plotted at the 10% of the channel’s width above the top border of the channel and offers an entry point for long positions for those traders, who are willing to make bullish bets on crude. The green line is placed at the channel’s width above the top border of the channel and provides a profit-taking objective for bulls.

You can click on the image to see a full-size version:

Double Bottom on Daily Chart of WTI Crude Oil as of 2019-06-16

The chart was built using the ChannelPattern script. You can download a MetaTrader 4 chart template for this crude oil pattern. You can also trade it using the free Chart Pattern Helper EA.

If you have any questions or comments regarding this double bottom pattern on the chart of crude oil, please feel free to submit them via the form below.


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Vladimir Vyun
Vladimir is an online journalist with background in computer science and work experience in pension funds. He contributes news reports, fundamental analysis and sentiment forecasts to TopForexNews.com and CommodityBlog.com. His main specialization is the currencies of emerging economies and inter-market correlations with commodity and bond trading.

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