The daily time frame shows that oil is heading to the lower orange trend line again. Stoch indicator is also supporting this indicator thats its a clear sell. Oil is also still setting lower highs and lower lows.
However, oil has already completed the bearish 5 wave Elliot structure. This is usually followed by a by bullish wave structure and indeed we can see a green wave after the 5th bearish wave. this green wave could be the 1st wave of the bullish wave structure an are now in the 2nd wave which is down. How ever this 2nd wave cant break the start of wave 1 meaning that very soon price will reverse back up again into the 3rd wave. An easy way to find this out is the Red Trend Line. If the daily candle closes above the Red Trend Line its a buy with 1st target at the Purple Trend Line and 2nd target and the Red Trend Line.
Trading advice:
1. Sell with a stop a bit above the red trend line. Target is the orange lower range. (If stop gets hit and daily candle closes above the red line then switch to buying)
2. If you dont feel comfortable with selling then either wait with buying till price has hit the lower orange range or till the daily candle closes above the red trend line.
However, oil has already completed the bearish 5 wave Elliot structure. This is usually followed by a by bullish wave structure and indeed we can see a green wave after the 5th bearish wave. this green wave could be the 1st wave of the bullish wave structure an are now in the 2nd wave which is down. How ever this 2nd wave cant break the start of wave 1 meaning that very soon price will reverse back up again into the 3rd wave. An easy way to find this out is the Red Trend Line. If the daily candle closes above the Red Trend Line its a buy with 1st target at the Purple Trend Line and 2nd target and the Red Trend Line.
Trading advice:
1. Sell with a stop a bit above the red trend line. Target is the orange lower range. (If stop gets hit and daily candle closes above the red line then switch to buying)
2. If you dont feel comfortable with selling then either wait with buying till price has hit the lower orange range or till the daily candle closes above the red trend line.
Trade active
Trade active:
touching that red trend line. watch carefully if it closes above it today for a buy