USOIL has been very bearish. Despite falling more than 50% in a matter of months, it has failed to produce a significant bounce. now it has produced a clear corrective count where we expected a three wave correction. A 3-3-5 running flat is where wave B exceeds wave A before wave C. Wave C must be a five wave move. In this place we have a 3-3-3-3-3 ending diagonal in great form.
This is a great trade because it is on a reliable time frame, and ending diagonals are easy to trade. breakig down the lower trend line should result in a violent cascade toward the base at least, meaning new lows. Its a great R/R ratio with a stoploss above local highs.
Comments
chessnut
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taken a bit of a hike but the count is still OK, blow-outs happen sometimes with ED, which is why it is often better to short the breakdown. there should be very little upside left if this is going to play out properly.
SunnyBTC
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yeh it's true. I'm on the fence now more so until the break down. I'll wait till it re-enters the wedge i think
SunnyBTC
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Hey Bud. I like it. I'm not sure if it can get above 54.40. however, given there is a 52W dynamic resistance at that level. Not sure but if it breaks that level it will either fomo up or fill a shed load of shorts!!! :)
chessnut
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yeah its a tough resistance area, although its not asking much to go from $54 - $54.4 imo
SunnyBTC
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Would really love for it to get into the orange minimum wave 5 target area to short it. The lower side of that is at 54.50. It also nicely caps the top of the rising wedge at 55.72, it's definitely an interesting zone to watch