WTI Crude (CL1!) -- Possible Butterfly Forming (Long then Short)
There may be a Butterfly forming in CL. The 786 retrace has already occurred and the current AB=CD (blue) and minor ab=cd (yellow) support targets that are consistent with the C point of a Butterfly. PRZ notes are on the chart.
Long:
The projected C point near 106 is likely an intermediate rest stop before heading up just shy of 110. This would be consistent with an EW motive wave for the minor ab=cd. With Harmonics based on Elliot Waves I am leaning toward an EW motive wave for the minor ab=cd. Thus, expecting the start of a minor EW fourth wave near 106 and the culmination of the fifth wave just shy of 110.
Short:
Either PRZ (106.09 or 109.87) is consistent with a Butterfly C point. Once the C point is confirmed, the D point can be recalculated. The current D point PRZ (78.37-79.73) is preliminary.
This is very early to be predicting a Butterfly pattern. It may not turn out. However, the current up leg clearly demonstrates strong AB=CD characteristics. If all of this comes to fruition, this is a Bullish Butterfly and prices should rebound nicely from the D point.
Strategy is to go Long on an intraday Buy signal with a target of 109.87 and ready to take profits at 106.09. Upon confirmation of a C point, enter Short with target around 79. Each of us has our own level of comfort with regards to timeframe and MAE; you should adjust these targets accordingly.
Long:
The projected C point near 106 is likely an intermediate rest stop before heading up just shy of 110. This would be consistent with an EW motive wave for the minor ab=cd. With Harmonics based on Elliot Waves I am leaning toward an EW motive wave for the minor ab=cd. Thus, expecting the start of a minor EW fourth wave near 106 and the culmination of the fifth wave just shy of 110.
Short:
Either PRZ (106.09 or 109.87) is consistent with a Butterfly C point. Once the C point is confirmed, the D point can be recalculated. The current D point PRZ (78.37-79.73) is preliminary.
This is very early to be predicting a Butterfly pattern. It may not turn out. However, the current up leg clearly demonstrates strong AB=CD characteristics. If all of this comes to fruition, this is a Bullish Butterfly and prices should rebound nicely from the D point.
Strategy is to go Long on an intraday Buy signal with a target of 109.87 and ready to take profits at 106.09. Upon confirmation of a C point, enter Short with target around 79. Each of us has our own level of comfort with regards to timeframe and MAE; you should adjust these targets accordingly.