The article covers the following subjects:
Major Takeaways
- Main scenario: After the correction ends, consider short positions below the level of 78.88 with a target of 61.50 – 53.60. A sell signal: the price holds below 78.88. Stop Loss: above 79.20, Take Profit: 61.50 – 53.60.
- Alternative scenario: Breakout and consolidation above the level of 78.88 will allow the asset to continue rising to the levels of 83.75 – 94.97. A buy signal: the level of 78.88 is broken to the upside. Stop Loss: below 78.50, Take Profit: 83.75 – 94.97.
Main Scenario
Consider short positions below the level of 78.88 with a target of 61.50 – 53.60 once a correction is completed.
Alternative Scenario
Breakout and consolidation above the level of 78.88 will allow the asset to continue rising to the levels of 83.75 – 94.97.
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 developing on the daily time frame. A local corrective wave (iv) of iii is unfolding on the H4 time frame, with wave c of (iv) developing as its part. If the presumption is correct, WTI will continue falling to 61.50 – 53.60 after the correction is over. The level of 78.88 is critical in this scenario as a breakout will enable the price to continue growing to 83.75 – 94.97.
Price chart of USCRUDE in real time mode
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