The article covers the following subjects:
Highlights and key points
- Main scenario: consider short positions from corrections below the level of 84.80 with a target of 72.30 – 67.60. A sell signal: after the level of 84.80 is broken. Stop Loss: 86.00, Take Profit: 67.60.
- Alternative scenario: breakout and consolidation above the level of 84.80 will allow the asset to continue rising to the levels of 90.95 – 95.25. A buy signal: after the level of 84.80 is broken. Stop Loss: 83.50, Take Profit: 95.25.
Main scenario
Consider short positions from corrections below the level of 84.80 with a target of 72.30 – 67.60.
Alternative scenario
Breakout and consolidation above the level of 84.80 will allow the asset to continue rising to the levels of 90.95 – 95.25.
Analysis
A descending correction appears to continue forming on the daily chart as the second wave of larger degree (2), with wave С of (2) developing as its part. Apparently, the third wave iii of С is forming on the H4 chart, with a corrective wave (ii) of iii completed and wave (iii) of iii forming inside. The first wave of smaller degree i of (iii) is developing on the H1 time frame. If this assumption is correct, the WTI asset will continue to drop to 72.30 – 67.60. The level of 84.80 is critical in this scenario as a breakout will allow the price to continue growing to the levels of 90.95 – 95.25.
Price chart of USCRUDE in real time mode
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