A look at the price per barrel of oil (symbol $WTIC) since the beginning of August (in the diagram below) strongly suggests that this market is in the process of completing a head and shoulders pattern. Notice how the 50-day moving average has acted as support for quite a while now (since June).
As a way to practice the material we covered the other day in class, see if you can draw in the neckline and find the lower price target. In order to evaluate the likelihood of the possible breakdown, look at other information in the diagram (below) and decide whether or not this pattern is likely to complete.
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