Hi everyone. We are about to reach the 0.5 Fibonacci level, which is around 73.5. This indicates whether we're in a correction or we started to see a downtrend. If the chart pivots from 0.5 level it can take back the previous high at around 85.30, which can then go to 100$ if it breaks the 85.30 level. As long as we're above 73.5, the 0.5 level is 100% in the reach. For the $100 level we need more confirmation and see how it reacts to the levels on the chart.
If we don't pivot from 0.5 level, I'm expecting an Elliot wave to the demand zone, which is the red box in the chart. It's likely the case that we hear a new about oil supply in upcoming weeks that can affect the price. In that case, the analysis has to be updated, but a down trend should be assumed. I personally don't see this happening, but we never know what the news is going to be.
As for entering a position, you should wait for the confirmation from the 0.5 level, and if the price doesn't close bellow the level. Once I got my confirmation, I would enter at above 0.5 level, with the stop loss of below 0.6.
Remember: You should ALWAYS have a Stop Loss when trading commodities. You should have stop loss in any case, but it's especially the case with commodities.
Note: Do your own analysis before making a trade.
Let me know what you all think! Any feedback would be greatly appreciated.
If we don't pivot from 0.5 level, I'm expecting an Elliot wave to the demand zone, which is the red box in the chart. It's likely the case that we hear a new about oil supply in upcoming weeks that can affect the price. In that case, the analysis has to be updated, but a down trend should be assumed. I personally don't see this happening, but we never know what the news is going to be.
As for entering a position, you should wait for the confirmation from the 0.5 level, and if the price doesn't close bellow the level. Once I got my confirmation, I would enter at above 0.5 level, with the stop loss of below 0.6.
Remember: You should ALWAYS have a Stop Loss when trading commodities. You should have stop loss in any case, but it's especially the case with commodities.
Note: Do your own analysis before making a trade.
Let me know what you all think! Any feedback would be greatly appreciated.
Comment:
Hello everyone. As I expected, we heard a news about oil supply, which means we have analyze the chart from scratch. I'll post an update soon, so stay tuned for new analysis!
