Bottom line: WTI Crude bearish reversal remains intact until prices stay below the 65.62 levels. A counter trend rally remains high probability from here.
Technical Analysis:
WTI Crude completes its first bearish leg that had begun from 65.62 levels just below 50.00 mark today. Please note that price support around 50.60 has now been taken off and bears seem to have registered themselves aggressively. Ideally a counter trend rally is expected to materialize from current levels (49.50/50.00) to push towards 59.50 levels at least. Looking at the recent drop from 65.62, WTI Crude has dropped in 5 waves. This can be marked as a lower degree Wave 1, within Wave (3) of a higher degree that resumed lower from 65.62 earlier. A 5 wave drop should be followed by a 3 wave corrective rally that could end up towards 59.50. This is also fibonacci 0.618 resistance of the previous drop 65.62 through 49.88. The larger wave structure also indicates that Wave (3) might have resumed from 65.62 levels. WTI Crude has produced a 5-3 wave structure since 76.88 highs earlier. Ideally, a 5-3 wave structure is followed by another 5 waves towards the major trend which is lower in this case. The drop between 76.88 and 42.40 was in 5 waves labelled as Wave (1), followed by a corrective rally towards 65.62 labelled as Wave (2). If these large degree counts are correct, WTI Crude stays below 65.62 and push towards 42.40, as Wave (3) progresses. Trading point of view it could be safe to take profits on short positions taken earlier around current price (50.20/30) and remain flat. If Wave (3) has resumed from 65.62 levels, any counter trend rally should be well capped below 65.62 going forward. Allow for a pullback rally to materialize towards 59.50 to initiate short positions again.
Prepared by
Harsh Japee, Technical Analyst.
WTI Crude Chart
MyFxtops 邁投 (www.myfxtops.com) -Reliable Forex Copy Trade community, follow the master for free to trade!
Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.
Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.
MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区，免费跟随高手做交易！
免责声明：本文系转载自网络，如有侵犯，请联系我们立即删除，另：本文仅代表作者个人观点，与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实，对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺，请读者仅作参考，并请自行核实相关内容。
著作权归作者所有。
商业转载请联系作者获得授权，非商业转载请注明出处。
