OIL Falling wedge Reversla Breakout expected @ 108.8$

Falling Market and falling wedge after the fall indicating a reversal in price,, Breakout at 108.80 tgt 112.5 - 117.8 CMP is 108.3 stop @ 107.5

"Falling Wedge" patterns are similar to "Symmetric Triangles" as they form in an angle; where as the "Symmetrical Triangles" form horizontally. "Falling wedge" patterns have lower highs and lower lows and are connected with two angled, slanted trend lines. These trend lines diverge at the bottom. Another type of "wedge" (inverse) pattern has trend lines converging at the bottom. The trend direction on the breakout from the "Falling Wedge" pattern would be upside.

"Falling wedges" are usually bullish in uptrend and downtrend markets. Similarly, "Falling wedge" patterns have a high failure rate. They are relatively difficult to spot them, and tend to work well in bearish markets.

Trade:

The "wedge" patterns are defined by trend. lines connecting the "higher-highs" and "lowerlows." A trend line breakout suggests a "long" trade. Trades are entered after a clear breakout from the trend line. Enter a "long" trade, one tick above the high of the breakout bar from the trend line.

Target:

Place a target at the higher "swing high" level of the "wedge" pattern. A secondary target is set at the depth of the wedge pattern from the breakout level.

Stop:

Place a "stop" order below the lowest level of the "wedge" pattern.

1. A "long" trade was entered above the breakout bars high.

2. A "stop" order was placed below the low of the "wedge" at the 107.5 level.

3. A target is set at the depth of the "wedge" pattern from the trade entry.

Targets: The length of the flagpole can be applied to the resistance break or support break of the flag/pennant to estimate the advance or decline.

Looking at the chart OIL 4hr chart is trading below the critical resistance of 108.8 and is expected to give a sharp continuation of uptrend from current level. If the resistance of 108.8 is holding and sustain trading is seen below 107 will continue in negative trend where on lower side it will move and test the lower level where it can test the level of 105 - 102 support level.