(The fourth wave holds the characteristics of being a fourth wave - it retraced less than 38.2% of wave 3.)
Note: The 10 day is in the study (– in blue), because it is important to see that every time a red dropped significantly below the 10 day “we shorted”. Currently, we are not in that “shorting territory”.
The pink highlighted area in the chart is the overall S&R ( ). This S&R is relevant to the current resistance and long-term support early in 2009.
Look at how we are presently above the short term – the turquoise dashed line; a is evolving.
The fifth wave is what we are getting into [from the as seen in my first CL1! Chart tradingview.com and noted in this chart as a green flag icon] the strongest and most dominant wave in terms of a .
We tested the bottom in January three times – look at the candle stick wicks (testing that area). When oil had its bottom in 2009 we had a W-like shaped formation. The green dashed lines are key levels of level of LONG TERM S&R.
The Gold line is a longer term trend of the oil sell off, but this sets up a new target for the 5th wave of the Analysis. In the short-term, we are in the midst of forming the 5th .
The highest probability price target is the “+4.68 (+14.16%) in 38d” price target. A quantified long term PT (price target) is +15.09 (+45.53%) in 91d.
NOTE: We could go to area D in – the pink . However, long-term trend is . We most likely reach level D in the if the pattern enfolds & really breaks-out.
Please, invest wisely and assess your risk tolerance level.