NYMEX Crude Oil (current contract in front) is moving to $55.24 level this week and has not exceeded the level of $ 58.13-58.82, which is a target range of a wave „4“ of lesser degree and the 0.618 Fibonacci. While the structure from the low @ $50.60 is not a complete structure I favor the idea of a „flat“ correction in progress which is not done and need some more up-down sequences to complete.
Best to observe for this movement is the of WTI @ Oanda, which fit this pattern more clearly.
If so to come, WTI will advance into the range of $60.874, which is shy above the 0.618 Fibonacci of the decline from $66.466-$50.535. More potential exist, but it should be limited to at least the $63.045 range, was a 0.786 Fibonacci is achieved. The adäquate range at the Future is at $63.18 a barrel.
Observing the inner structure at lower timeframes, here the 4 h chart, you will take notice, that the move down (red arrow) is clearly a „three-down“ and declined within a trend channel, the breakout of this channel implies more buying pressure to come.
The alternate view for WTI gives the opportunity that wave „2“ is done and the next price development is to the downside within a wave „3“ down. A decline below the two red dashed lines @ $50.60area will be a good hint that this wave is underway.
The targets are valid as I mentioned before. It is the area of $42.- a barrel-
I will update the chart in the coming week.
Have a great weekend...
Feel free to ask or comment.
Trading this analyze is at your own risk!