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Bullish Flag on 4-Hour Chart of Oil

April 24, 2016 at 18:04 by Vladimir Vyun

There is good news for those traders who hoped for crude oil to continue its upward movement. The bullish flag pattern that has formed on the 4-hour chart of crude oil suggests that prices are indeed may rally higher.

The yellow continuous line shows the flagpole which was created by a sharp move up. The yellow dotted lines show the flag itself. It is important to note that the pattern is not ideal as usually flags are directed opposite to moves that create flagpoles, Obstacle Bounce House not sideways as in the present case. This means that the current pattern is weaker and less reliable. Nevertheless, in case of an upside breakout traders willing to place bullish bets can use the cyan line as an entry point for long positions. The green line offers a profit-taking objective.

Click the image to enlarge it to a full-size screenshot:

You can download the MetaTrader 4 chart template for this pattern.

If you have any questions or comments regarding this chart pattern for oil, please feel free to reply below.

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