The article covers the following subjects:
Highlights and key points
- Main scenario: consider short positions from corrections below the level of 77.00 with a target of 61.50 – 53.60. A sell signal: if the price holds below 77.00. Stop Loss: above 78.50, Take Profit: 61.50 – 53.60.
- Alternative scenario: breakout and consolidation above the level of 77.00 will allow the asset to continue rising to the levels of 83.75 – 90.00. A buy signal: once the level of 77.00 is broken to the upside. Stop Loss: below 75.50, Take Profit: 83.75 – 90.00.
Main scenario
Consider short positions from corrections below the level of 77.00 with a target of 61.50 – 53.60.
Alternative scenario
Breakout and consolidation above the level of 77.00 will allow the asset to continue rising to the levels of 83.75 – 90.00.
Analysis
A 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 first wave of smaller degree i of С is formed, a correction is completed as the second wave ii of С, and the third wave iii of C is formed on the daily time frame. A local corrective wave (iv) of iii is nearing completion on the H4 time frame. If the presumption is correct, WTI will continue falling to 61.50 – 53.60. The level of 77.00 is critical in this scenario as a breakout will enable the price to continue growing to the levels of 83.75 – 90.00.
Price chart of USCRUDE in real time mode
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