The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 101.25 with a target of 78.00–65.00. A sell signal: the price holds below 101.25. Stop Loss: above 103.00, Take Profit: 78.00–65.00.
- Alternative scenario: Breakout and consolidation above the level of 101.25 will allow the pair to continue rising to the levels of 115.70–126.00. A buy signal: the level of 101.25 is broken to the upside. Stop Loss: below 99.50, Take Profit: 115.70–126.00.
Main Scenario
Consider short positions from corrections below the level of 101.25 with a target of 78.00–65.00.
Alternative Scenario
Breakout and consolidation above the level of 101.25 will allow the asset to continue rising to the levels of 115.70–126.00.
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) has started unfolding, with the first wave of smaller degree 1 of (3) completed as its part. On the H4 time frame, a descending correction is presumably developing as the second wave 2 of (3), with wave c of 2 forming within. If the presumption is correct, WTI will continue to decline to the levels of 78.00–65.00. The level of 101.25 is critical in this scenario as a breakout above it will enable the price to continue rising to the levels of 115.70–126.00.
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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