The article covers the following subjects:
Major Takeaways
- Main scenario: After correction ends, consider short positions below the level of 78.88 with a target of 61.50 – 53.60. A sell signal: the price holds below 78.88. Stop Loss: above 79.20, Take Profit: 61.50 – 53.60.
- Alternative scenario: Breakout and consolidation above the level of 78.88 will allow the asset to continue rising to the levels of 83.75 – 94.97. A buy signal: the level of 78.88 is broken to the upside. Stop Loss: below 78.50, Take Profit: 83.75 – 94.97.
Main Scenario
Consider short positions below the level of 78.88 with a target of 61.50 – 53.60 once correction is completed.
Alternative Scenario
Breakout and consolidation above the level of 78.88 will allow the asset to continue rising to the levels of 83.75 – 94.97.
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 third wave of smaller degree iii of С is formed on the daily time frame, and a local correction is nearing completion as the fourth wave iv of С. The H4 time frame shows that wave (a) of iv and wave (b) of iv are completed, and wave (c) of iv is coming to its end. If the presumption is correct, WTI will continue falling to 61.50 – 53.60 after the correction is over. The level of 78.88 is critical in this scenario as a breakout will enable the price to continue growing to 83.75 – 94.97.
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
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteFinance. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.
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