The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above 87.20 with a target of 115.70–126.00. A buy signal: the price holds above 87.20. Stop Loss: below 85.50, Take Profit: 115.70–126.00.
- Alternative scenario: Breakout and consolidation below 87.20 will allow the asset to continue declining to the levels of 78.70–65.00. A sell signal: the level of 87.20 is broken to the downside. Stop Loss: above 88.80, Take Profit: 78.70–65.00.
Main Scenario
Consider long positions from corrections above 87.20 with a target of 115.70–126.00.
Alternative Scenario
Breakout and consolidation below 87.20 will allow the asset to continue declining to the levels of 78.70–65.00.
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) still developing as its part. Apparently, wave v of 1 is developing on the H4 time frame, with a local correction (ii) of v formed as its part. If the presumption is correct, WTI will continue to rise to 115.70–126.00 within wave (iii) of v. The level of 87.20 is critical in this scenario as a breakout below it will enable the asset to continue declining to the levels of 78.70–65.00.
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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