The article covers the following subjects:
Highlights and key points
- Main scenario: once a correction forms, consider short positions below the level of 83.94 with a bearish target of 63.50 – 53.60. A sell signal: after the price returns below 83.94. Stop Loss: above 85.50, Take Profit: 63.50 – 53.60.
- Alternative scenario: breakout and consolidation above the level of 83.94 will allow the asset to continue rising to the levels of 89.53 – 94.10. A buy signal: after the level of 83.94 is broken to the upside. Stop Loss: below 81.50, Take Profit: 89.53 – 94.10.
Main scenario
Consider short positions below the level of 83.94 with a target of 63.50 – 53.60 once a correction is completed.
Alternative scenario
Breakout and consolidation above the level of 83.94 will allow the asset to continue rising to the levels of 89.53 – 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 is formed on the daily time frame, and a local correction is developing as the second wave ii of С. Wave (с) of ii is unfolding on the H4 time frame. If the presumption is correct, WTI will continue falling to 63.50 – 53.60 after correction. The level of 83.94 is critical in this scenario as a breakout will enable the price to continue growing to the levels of 89.53 – 94.10.
Price chart of USCRUDE in real time mode
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