..has been a source of two good shorting opportunities over the past month as indicated by the red arrows on the left. The chart is somewhat self explanatory so if anyone has any questions, please feel free to ask. The primary consideration which is pointed to by the red arrow on the right is the confluence between the red trendline, the rising wedge, and the horizontal resistance level around 102. The 20-day moving average is overhead around 103 (as of Wednesday) but I wouldn’t count on oil tagging it because it hasn’t been doing so during this current major move down from 120.
Elliot Wave Theory note: It appears a 1-2-3-4-5 downward wave pattern has manifested and a corrective A wave has brought us back to the red trendline. A 'B' wave is what will be created by a rejection off of the trendline, in theory. The 200-day around 94 would be a reasonable downside price target. Price is 100.22 as of this publishing.
Elliot Wave Theory note: It appears a 1-2-3-4-5 downward wave pattern has manifested and a corrective A wave has brought us back to the red trendline. A 'B' wave is what will be created by a rejection off of the trendline, in theory. The 200-day around 94 would be a reasonable downside price target. Price is 100.22 as of this publishing.
Comment:
Price didn't hit the resistance confluence I was looking for and is running out of time to, as the red trendline diverges downward.
Order cancelled:
price never reached resistance confluence, but general direction was correct