The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above 92.50 with a target of 115.50–125.50. A buy signal: the price holds above 92.50. Stop Loss: below 91.00, Take Profit: 115.50–125.50.
- Alternative scenario: Breakout and consolidation below 92.50 will allow the asset to continue declining to the levels of 78.58–67.00. A sell signal: the level of 92.50 is broken to the downside. Stop Loss: above 94.00, Take Profit: 78.58–67.00.
Main Scenario
Consider long positions from corrections above 92.50 with a target of 115.50–125.50.
Alternative Scenario
Breakout and consolidation below 92.50 will allow the asset to continue declining to the levels of 78.58–67.00.
Analysis
On the weekly chart, a descending correction has likely finished developing as the second wave of larger degree (2) and an ascending third wave (3) is forming. On the daily chart, apparently, the first wave of smaller degree 1 of (3) has formed, a local correction has been completed as wave 2 of (3), and the third wave 3 of (3) is unfolding. Wave i of 3 continues developing on the H4 chart; within it, wave (iii) of i is unfolding. If the presumption is correct, WTI will continue to rise to 115.50–125.50. The level of 92.50 is critical in this scenario as a breakout below it will enable the asset to continue declining to the levels of 78.58–67.00.
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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