The article covers the following subjects:
Highlights and key points
- Main scenario: once a correction forms, consider short positions below the level of 79.40 with a bearish target of 70.50 – 67.60. A sell signal: after the price returns below 79.40. Stop Loss: above 80.50, Take Profit: 70.50 – 67.60.
- Alternative scenario: breakout and consolidation above the level of 79.40 will allow the asset to continue rising to the levels of 84.78 – 90.95. A buy signal: after the level of 79.40 is broken to the upside. Stop Loss: below 78.00, Take Profit: 84.78 – 90.95.
Main scenario
Consider short positions below the level of 79.40 with a target of 70.50 – 67.60 once a correction is completed.
Alternative scenario
Breakout and consolidation above the level of 79.40 will allow the asset to continue rising to the levels of 84.78 – 90.95.
Analysis
A descending correction appears to continue forming on the daily chart as the second wave of larger degree (2), with wave С of (2) developing as its part. Apparently, the third wave iii of С is forming on the H4 chart, with a corrective wave (ii) of iii completed and wave (iii) of iii continuing forming inside. The third wave of smaller degree iii of (iii) is formed on the H1 chart, and a local correction is unfolding as wave iv of (iii). After the correction ends, if the presumption is correct, WTI will continue falling to 70.50 – 67.60. The level of 79.40 is critical in this scenario as a breakout will allow the price to continue growing to the levels of 84.78 – 90.95.
Price chart of USCRUDE in real time mode
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