The article covers the following subjects:
Major Takeaways
- Main scenario: After the correction ends, consider short positions below the level of 70.00 with a target of 50.50–45.00. A sell signal: the price holds below 70.00. Stop Loss: above 70.00, Take Profit: 50.50–45.00.
- Alternative scenario: Breakout and consolidation above the level of 70.00 will allow the asset to continue rising to the levels of 77.50–84.00. A buy signal: the level of 70.00 is broken to the upside. Stop Loss: below 70.00, Take Profit: 77.50–84.00.
Main Scenario
Consider short positions below the level of 70.00 with a target of 50.50–45.00 once the correction is completed.
Alternative Scenario
Breakout and consolidation above the level of 70.00 will allow the asset to continue rising to the levels of 77.50–84.00.
Analysis
A descending correction appears to continue forming as the second wave of larger degree (2) on the weekly chart, with wave C of (2) developing as its part. On the daily time frame, a bullish correction appears to have formed as the fourth wave iv of C, and the fifth wave v of C has started developing. The third wave of smaller degree (iii) of v of C is presumably completed on the H4 time frame. The fourth wave (iv) of v is nearing completion as a local correction. If the presumption is correct, WTI will continue falling to 50.50–45.00 after the correction is over. The level of 70.00 is critical in this scenario as a breakout above it will enable the price to continue rising to the levels of 77.50–84.00.
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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