Monday’s Hook Line & Sinker Signal In Oil

On Friday, oil gapped down to a new 60 day high but closed at/near session highs registering a Gilligan buy signal.

When Friday's ‘tail' was snapped, oil skidded lower undercutting the key 40 level.

As projected since topping out at 51, a downturn in oil targeted 38 to 39.

Many stocks in the sector left Hook Line & Sinker sell signals in hooking higher on Friday followed by the ‘line' down on Monday.

Today could be another sinker if the pattern follows suit especially with 38 magnet looming large.

Remember, up days following large sell days are typically not the stuff of reversals. Rather up opens on the heels of big distribution days are typically short setups.

Big picture, SCO, the oil bear ETF shows what may be a major Head & Shoulders.

SCO lower means oil higher oil—eventually.

But two things, this could come from a more symmetrical right shoulder.

Additionally, if a right shoulder is not on the table and SCO knifes through 140 ish, it implies meaningfully lower oil prices.

See SCO and daily oil here from June

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