The article covers the following subjects:
Highlights and key points
- Main scenario: once a correction forms, consider short positions below the level of 78.85 with a bearish target of 63.50 – 53.60. A sell signal: after the price returns below 78.85. Stop Loss: above 80.00, Take Profit: 63.50 – 53.60.
- Alternative scenario: breakout and consolidation above the level of 78.85 will allow the asset to continue rising to the levels of 84.16 – 94.10. A buy signal: after the level of 78.85 is broken to the upside. Stop Loss: below 77.50, Take Profit: 84.16 – 94.10.
Main scenario
Consider short positions on corrections below the level of 78.85 with a target of 63.50 – 53.60.
Alternative scenario
Breakout and consolidation above the level of 78.85 will allow the asset to continue rising to the levels of 84.16 – 94.10.
Analysis
A descending correction appears to continue forming on the weekly chart as the second wave of larger degree (2), with wave С of (2) developing as its part. Apparently, the first wave of smaller degree i of С and the second corrective wave ii of C have completed on the daily chart. The wave iii of C has begun to unfold on the H4 time frame. If the presumption is correct, WTI will continue falling to 63.50 – 53.60. The level of 78.85 is critical in this scenario as a breakout will allow the price to continue growing to the levels of 84.16 – 94.10.
Price chart of USCRUDE in real time mode
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