The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 95.15 with a target of 78.00–65.00. A sell signal: the price holds below 95.15. Stop Loss: above 97.00, Take Profit: 78.00–65.00.
- Alternative scenario: Breakout and consolidation above the level of 95.15 will allow the pair to continue rising to the levels of 108.30–126.00. A buy signal: the level of 95.15 is broken to the upside. Stop Loss: below 93.30, Take Profit: 108.30–126.00.
Main Scenario
Consider short positions from corrections below the level of 95.15 with a target of 78.00–65.00.
Alternative Scenario
Breakout and consolidation above the level of 95.15 will allow the asset to continue rising to the levels of 108.30–126.00.
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) appears to have started developing. Within it, the first wave of smaller degree 1 of (3) has formed, and a downward correction is unfolding as the second wave 2 of (3). Wave c of 2 is presumably developing on the H4 chart; within it, wave (v) of c has started unfolding. If the presumption is correct, WTI will continue to decline to the levels of 78.00–65.00. The level of 95.15 is critical in this scenario as a breakout above it will enable the price to continue rising to the levels of 108.30–126.00.
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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