Apache Corp Head and Shoulder forming

Apache Corp Head and Shoulder forming

I blogged on Apache Corp on 18 August after  its latest WA oil discovery and undertook to post a follow up if a bearish reversal pattern began to develop. With oil prices on the slide and the $US rallying, it looks close to a downside break so I thought now might be the time for a follow up

From here a break below the neck line would complete a head and shoulder pattern that would set up for a deeper correction of the rally from .32

Another possibility, would be for the right shoulder to do a bit more work to make it more symmetrical with the left before it eventually breaks the  neckline. This might even involve a temporary rally past the peak at 2.89 that I've currently called the right shoulder. Either way it deserves a spot in the seller's watch list I reckon

Apache Corp Head and Shoulder

Apache Corp  CFD Daily Click to Enlarge Apache Corp CFD Daily
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For those not aware, Apache is currently figuring in Australian investment news because of plans to sell its substantial Australian oil and gas assets. Possibilities include purchase by the likes of Woodside or Santos or even a listing of on the ASX. Here's a good summary of what's going on by Business Spectator