The article covers the following subjects:
Major Takeaways
Main scenario: Consider long positions from corrections above the level of 66.50 with a target of 85.50 – 95.00. A buy signal: the price holds above 66.50. Stop Loss: below 64.00, Take Profit: 85.50 – 95.00.Alternative scenario: Breakout and consolidation below the level of 66.50 will allow the pair to continue declining to the levels of 60.00 – 52.80. A sell signal: the level of 66.50 is broken to the downside. Stop Loss: above 68.50, Take Profit: 60.00 – 52.80.
Main Scenario
Consider long positions from corrections above the level of 66.50 with a target of 85.50 – 95.00.
Alternative Scenario
Breakout and consolidation below the level of 66.50 will allow the asset to continue declining to the levels of 60.00 – 52.80.
Analysis
The descending correction appears to have formed as the second wave of larger degree (2) on the weekly chart, with wave С of (2) completed as its part. On the daily time frame, the third wave (3) has started unfolding, with the counter-trend first wave of smaller degree i of 1 of (3) forming. Wave (iii) of i is formed on the H4 chart, and a local correction is unfolding as wave (iv) of i. If the presumption is correct, WTI will continue to rise to the levels of 85.50 – 95.00 after the correction ends. The level of 66.50 is critical in this scenario as a breakout will enable the price to continue falling to the levels of 60.00 – 52.80.
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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