The article covers the following subjects:
Major Takeaways
- Main scenario: After the correction ends, consider short positions below the level of 72.20 with a target of 52.80 – 45.00. A sell signal: the price holds below 72.20. Stop Loss: above 73.50, Take Profit: 52.80 – 45.00.
- Alternative scenario: Breakout and consolidation above the level of 72.20 will allow the asset to continue rising to the levels of 80.70 – 87.75. A buy signal: the level of 72.20 is broken to the upside. Stop Loss: below 70.80, Take Profit: 80.70 – 87.75.
Main Scenario
Consider short positions below the level of 72.20 with a target of 52.80 – 45.00 once the correction is completed.
Alternative Scenario
Breakout and consolidation above the level of 72.20 will allow the asset to continue rising to the levels of 80.70 – 87.75.
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 third wave of smaller degree iii of С is formed on the daily time frame, and a local correction is unfolding as the fourth wave iv of C. Wave (a) of iv and wave (b) of iv are completed on the H4 chart, while wave (c) of iv is developing at the moment. If the presumption is correct, WTI will continue falling to 52.80 – 45.00 after the correction is over. The level of 72.20 is critical in this scenario as a breakout will enable the price to continue growing to 80.70 – 87.75.
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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