Here we try to determine if the head and shoulders reversal pattern is technically correct. West Texas Intermediate Crude Oil The crude oil market rose slightly during the Wednesday session as the $80 level continues to provide support. We also have the 50 day EMA there as well as the head and shoulders that I marked on the chart. Overall, I think there is still a lot of volatile activity in this market, so I think you should look at it through a very short-term market lens. Advertisement Take advantage of today’s oil moves Trade now There are plenty of buyers for oil Because of this, it’s worth noting that the top’s head and shoulders have at least not been removed yet. In other words, I think you will continue to see short-term buyers jump into this market and take small positions. Whether we can make a profit is another question entirely, but it’s possible that we’re seeing more noise than anything else. Also note that the market continues to be sandwiched between several different stories, and this is of course something to watch. After all, the market is likely to suffer a significant loss of demand as the global economy appears to be slowing down. This will of course have a drastic effect on the demand for oil as it is the driving force behind world trade. Adding pressure to the oil idea is that central banks around the world continue to tighten monetary policy. In general, as monetary policy tightens, it tends to reduce global demand. It is worth noting that American truckers have recently complained that they no longer have the power to set prices because demand is nowhere near what it was. In my opinion, special attention should be given to this. However, if it breaks through the highs of the last few days, it is very possible that this market could at least try to reach the 200-day EMA near the $87 area. Here we try to determine if the head and shoulders reversal pattern is technically correct.