Odds that the red scenario plays out are gaining traction rapidly. We mentioned the importance of the horizontal blue band in our April 12th update here.
The nearest WTI contract came back below that band. The drop looks overlapping and thus corrective. It came close to a 38.2% Fibonacci level. The subsequent rise over the past hours looks impulsive.
It A fading 3-wave drop appears like a good risk/return trade setup. The blue band continues to be our directional gauge. Oil is at a junction, which can get dangerous for shorts.
S/L : 65.55 Target: >80
Trade closed: target reached
⋅
Closing this earlier than our initial $80 target. Crude looks like it does a wedge (diagonal). Positions are quite crowded. Waiting for a pullback to reenter.