Crude did a textbook correction. It was sudden and hard and faked a break-out. Net speculative positioning came off further in crude. All in all, the upside may be clear for further progress.
The crude Elliott wave pattern has probably completed its correction. A 61.8% Fibonacci got targeted and the bounce from the low appears impulsive. The next step is a break of the pale red correction trend to the downside. Moreover, the blue dotted line has to be conquered. Otherwise, a breakout is not confirmed and some other structure is likely to develop. The black scenario depicts our forecast. It needs to be reconsidered if 64.20 trades to the downside.
All in all, we remain bullish on crude as long as the light green trend channel holds and expect the WTI to rally towards $80.
s/l: 64.20 t: 5-waves up (minuette degree)
Comment
⋅
looks ugly but counts best as a leading diagonal off the June 5th low. Hence, a motive wave setting up a new uptrend. This trade is dead if 64.20 gets crossed to the downside.