The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above 84.85 with a target of 115.70–126.00. A buy signal: the price holds above 84.85. Stop Loss: below 82.90, Take Profit: 115.70–126.00.
- Alternative scenario: Breakout and consolidation below 84.85 will allow the asset to continue declining to the levels of 75.70–65.00. A sell signal: the level of 84.85 is broken to the downside. Stop Loss: above 86.50, Take Profit: 75.70–65.00.
Main scenario
Consider long positions from corrections above 84.85 with a target of 115.70–126.00.
Alternative scenario
Breakout and consolidation below the level of 84.85 will allow the asset to continue declining to the levels of 75.70–65.00.
Analysis
A descending correction (2) appears to have formed on the weekly chart, with wave C of (2) completed as its part. On the daily timeframe, an ascending third wave (3) has started unfolding, with the first wave of smaller degree 1 of (3) still developing as its part. On the H4 timeframe, wave v of 1 is developing, within which a local correction (iv) of v has been completed and wave (v) of v has started forming. If the presumption is correct, WTI will continue to rise to the levels of 115.70–126.00. The level of 84.85 is critical in this scenario as a breakout below it will enable the asset to continue declining to the levels of 75.70–65.00.
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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