Oil started rebounding when it came to the potential reverse zone at Friday. From elliott wave analysis, the correction wave completed likely. Break out of the sharp decline channel will confirm the rebound.
Trading suggestion: Go long when it breaks out of the decline channel with SL at 40.5 TP1: 43.19 TP2: 44.51 TP3: 45.90
No confirmation, no trading!
Good luck for everyone!
Trade active
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Comment
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Be careful! it might be a false break. I set a tight Stop Loss at 40.5!
Trade closed: stop reached
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Oil is still very bearish. I shorted it again. I am looking forward it going to bottom of the weekly decline channel.
thanks sir your quick response. sir i am asking on 4 th wave at traingle area i.e. 44 --46 zone sir
zhipengcfel
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Thanks for the question. Wave 4 go into wave 1 area is forbidden for stock market , but for futures it is a little different.
prasanro
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sir please teach me i have seen that main 4 th wave in main c wave is trade in wave 1 territorry .so is that valid count but it is 100% valid count because mkt react accoringly. SO WHAT IS THE THEORY BEHIND THIS SIR
zhipengcfel
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Ending diagonal allows wave 4 reach into the bottom of wave 1.
prasanro
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sir what will be sl and tgt sir for long position and your wave count rectified my wave count and you are right sir for ending diagonal on 5 th of 5th is perfect identification. sir you are a great teacher pl do post regularly for learning to novice trader like me
zhipengcfel
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I set SL at 40.5 still. TP1: 41.8, TP2: 43.19, TP3: 44.51.
prasanro
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sir what is the current price on weekly decline channel
zhipengcfel
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It can drop down to 38.2 -> 36.3 -> 34.3.
tbuckle
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Price action in oil kinda bobbing and weaving all over the place and seeing things in limbo, eh?
zhipengcfel
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Yes. It is very choppy. But trade as what you have planed!