The article covers the following subjects:
Highlights and key points
- Main scenario: consider short positions from corrections below the level of 77.90 with a target of 61.50 – 53.60. A sell signal: if the price holds below 77.90. Stop Loss: above 78.50, Take Profit: 61.50 – 53.60.
- Alternative scenario: breakout and consolidation above the level of 77.90 will allow the asset to continue rising to the levels of 83.75 – 90.00. A buy signal: once the level of 77.90 is broken to the upside. Stop Loss: below 77.20, Take Profit: 83.75 – 90.00.
Main scenario
Consider short positions from corrections below the level of 77.90 with a target of 61.50 – 53.60.
Alternative scenario
Breakout and consolidation above the level of 77.90 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 unfolding on the daily time frame. A local correction is presumably completed as the fourth wave (iv) of iii on the H4 time frame, and the fifth wave (v) of iii has started developing. If the presumption is correct, WTI will continue falling to 61.50 – 53.60. The level of 77.90 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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