The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above 79.17 with a target of 105.17–115.50. A buy signal: the price holds above 79.17. Stop Loss: below 77.60, Take Profit: 105.17–115.50.
- Alternative scenario: Breakout and consolidation below 79.17 will allow the asset to continue declining to the levels of 67.00–58.50. A sell signal: the level of 79.17 is broken to the downside. Stop Loss: above 80.80, Take Profit: 67.00–58.50.
Main Scenario
Consider long positions from corrections above 79.17 with a target of 105.17–115.50.
Alternative Scenario
Breakout and consolidation below 79.17 will allow the asset to continue declining to the levels of 67.00–58.50.
Analysis
A descending correction appears to have formed as the second wave of larger degree (2) on the weekly chart, with wave C of (2) completed as its part. On the daily time frame, an ascending third wave (3) is likely developing. Within it, the first wave of smaller degree 1 of (3) has formed, a downward correction has been completed as the second wave 2 of (3), and wave 3 of (3) has started forming. Wave i of 3 appears to continue developing on the H4 chart, with a local correction (ii) of i completed and wave (iii) of i unfolding as parts of its structure. If the presumption is correct, WTI will continue to rise to 105.17–115.50. The level of 79.17 is critical in this scenario as a breakout below it will enable the asset to continue declining to the levels of 67.00–58.50.
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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