Oil is forming a head and shoulder pattern

The price of crude oil has been moving in an upward trend for some time. Nevertheless, looking at the hourly chart, momentum has slowed down recently, which creates a risk of a correction. On the H1 interval, a classic head-shoulders formation is building up. Despite the fact that oil launched today’s session with an bullish price gap, the sellers have taken the initiative around the area of the potential left arm, which means that there is a chance for further declines. However, for this scenario to materialize, the price must break below the neckline which is located around $ 64.40. Should a break  lower occur, then downward move could be extended even to the lows at $ 61.60. On the other hand, breaking above $ 65.75 level will invalidate the bearish scenario.