In this article, we are drawing Pitchfork channels on Oil
On the weekly Oil chart, we can see that the instrument has been rejected by the median line 76 level of the long-term uptrend channel and is extending its downside and the uptrend channel line 59 level.
Using Andrews Pitchfork tool hint: to plot Andrew’s Pitchfork on a chart, first look for three consecutive big highs or lows at the asset’s price. These key points are highlighted in the chart below.
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We have used the combination of the top-down trading analysis and the Andrews Pitchfork channels to get to a trading entry stop loss levels and targets. On the daily chart, there is a new clear downside sideways Pitchfork channel and a bounce from here could lead to pullback into the 65.50 level for a new short trade entry opportunity. You can enter a good risk to reward short trade entry with the stop loss above the 66.40 level, targeting 60 level lower. Invalidation of the downside swing will come only on a daily close above the 66.50 level.
