The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above 88.00 with a target of 115.50–125.50. A buy signal: the price holds above 88.00. Stop Loss: below 86.50, Take Profit: 115.50–125.50.
- Alternative scenario: Breakout and consolidation below 88.00 will allow the asset to continue declining to the levels of 79.30–67.00. A sell signal: the level of 88.00 is broken to the downside. Stop Loss: above 89.50, Take Profit: 79.30–67.00.
Main Scenario
Consider long positions from corrections above 88.00 with a target of 115.50–125.50.
Alternative Scenario
Breakout and consolidation below 88.00 will allow the asset to continue declining to the levels of 79.30–67.00.
Analysis
On the weekly chart, a descending correction has likely finished developing as the second wave of larger degree (2) and an ascending third wave (3) is forming. On the daily chart, apparently, the first wave of smaller degree 1 of (3) has formed, a local correction has been completed as wave 2 of (3), the third wave 3 of (3) is unfolding, and wave i of 3 continues to form. Wave (iii) of i is forming on the H4 chart, within which wave v of (iii) is unfolding. If the presumption is correct, WTI will continue to rise to 115.50–125.50. The level of 88.00 is critical in this scenario as a breakout below it will enable the asset to continue declining to the levels of 79.30–67.00.
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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