The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 73.00 with a target of 61.50 – 53.00. A sell signal: the level of 73.00 is broken to the downside. Stop Loss: above 73.80, Take Profit: 61.50 – 53.00.
- Alternative scenario: Breakout and consolidation above the level of 73.00 will allow the asset to continue rising to the levels of 80.70 – 87.40. A buy signal: the level of 73.00 is broken to the upside. Stop Loss: below 72.50, Take Profit: 80.70 – 87.40.
Main Scenario
Consider short positions from corrections below the level of 73.00 with a target of 61.50 – 53.00.
Alternative Scenario
Breakout and consolidation above the level of 73.00 will allow the asset to continue rising to the levels of 80.70 – 87.40.
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, a correction is completed as the fourth wave of smaller degree iv of C and the fifth wave v of C is in progress on the daily time frame. On the H4 time frame, the first wave of smaller degree (i) of v is formed, a local correction is completed as the second wave (ii) of v, and the third wave (iii) of v is unfolding. If the presumption is correct, WTI will continue to drop to the levels of 61.50 – 53.00. The level of 73.00 is critical in this scenario as a breakout will enable the price to continue growing to 80.70 – 87.40.
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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