Crude Oil: Shorting AB=CD and Targeting Potential Bullish Crab
A bearish AB=CD pattern completes at 48.95 -- I will be watching the price action in this area to short. If Crude respects this pattern and begins to drop I will likely stay bearish until the completion of the bullish Crab which completes at 46.88, right 3 cents away from the .618 retracement.
From an Elliott Wave perspective this fits well with the idea that the run up from $53.76 was a large Wave 1 and that we are currently in Wave 2. The Crab would then be an exciting opportunity as it could lead to Wave 3 and an accordingly explosive bullish move.
That is all speculation, however (I guess this all is...) -- for now I am focusing on the 48.95 area to short.
Stay nimble and trade safe.
From an Elliott Wave perspective this fits well with the idea that the run up from $53.76 was a large Wave 1 and that we are currently in Wave 2. The Crab would then be an exciting opportunity as it could lead to Wave 3 and an accordingly explosive bullish move.
That is all speculation, however (I guess this all is...) -- for now I am focusing on the 48.95 area to short.
Stay nimble and trade safe.
Trade active:
Let's see how this goes
Trade closed: target reached:
TP1 was reached (2 times), with the rest of the position stopped out at breakeven.
TP1 was reached (2 times), with the rest of the position stopped out at breakeven.
Comment:
The chart is definitely looking bearish on the longer time frames, however this channel suggests there may be a retracement of today's drop. The .618 appears to be an interesting spot to short for further downside...
The chart is definitely looking bearish on the longer time frames, however this channel suggests there may be a retracement of today's drop. The .618 appears to be an interesting spot to short for further downside...
The bearish AB=CD pattern