The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 72.35 with a target of 52.80 – 45.00. A sell signal: the price holds below 72.35. Stop Loss: above 73.00, Take Profit: 52.80 – 45.00.
- Alternative scenario: Breakout and consolidation above the level of 72.35 will allow the asset to continue rising to the levels of 80.70 – 87.40. A buy signal: the level of 72.35 is broken to the upside. Stop Loss: below 71.70, Take Profit: 80.70 – 87.40.
Main scenario
Consider short positions from corrections below the level of 72.35 with a target of 52.80 – 45.00.
Alternative scenario
Breakout and consolidation above the level of 72.35 will allow the asset to continue rising to the levels of 80.70 – 87.40.
Analysis
The descending correction appears to continue forming as the second wave of larger degree (2) on the weekly chart, with wave С of (2) developing as its part. Apparently, the corrective fourth wave of smaller degree iv of C is completed and the fifth wave v of C is forming on the daily time frame. On the H4 time frame, the third wave of smaller degree (iii) of v is presumably formed, and a local correction is unfolding as the fourth wave (iv) of v. Upon its completion, if the presumption is correct, WTI will continue to decline to 52.80 – 45.00. The level of 72.35 is critical in this scenario, as a breakout will enable the price to continue growing to 80.70 – 87.40.
This forecast is based on the Elliott Wave Theory. When developing trading strategies, it is essential to consider fundamental factors, as the market situation can change at any time.
Price chart of USCRUDE in real time mode
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