chartwatchers

OIL - Dangerous times

FX:USOIL   Crude Oil (WTI)
3801 21 74
5 months ago
I'm going to use this post many times during the following month.
We are getting late in this larger intermediate cycle in oil             . Due to my cycle count we are going to have a correction and an intermediate cycle low in the first 2 weeks of August. It will be a great bottom a perfect buying opportunity for the rest of the year.
I know most of you would like to catch every move in oil             so I'm trying to predict what we can wait in July.
What is almost 100% sure that we are having a bottom (intermediate correction box on the picture) between 1st Aug to 15th Aug. This bottom will be between the 200 SMA and the Saudi beartrap bottom. The Saudi bottom is a very important low, I think that will be an ultimate low for the next decade so powers will fight to protect that with tooth and nails.

The 2 options for July is set by green and red trendlines.
1. (red) we will be in a range for the next 2 weeks not breaking the 51$ level and in the middle of July we start to head down into the intermediate correction box.(40% chance)
2. (green) We break the 51$ level next week , pop up to 55-60$ and we start to head down into the intermediate correction box in a steeper decline. (60% chance) The indicators , the lower consolidating volume are supporting this scenario.
You know that I'm in the "S&P long camp " now . If stocks are breaking to new highs - and I think they will - the bull euphoria will pull up the oil             prices to new highs as the oil             related shares will rally as well..

So if you go long now you have to be prepared for an intermediate correction down to 37$ .
If you go short be ready for a pop up to 55-60 during the next 2 weeks. If someone is risking only the 10-20% margin I think a short play will be profitable in 1.5 months from now just have some margin to survive the pop up to 55-60 if there will be. The young bull usually kicks the shorts one more time before finishes the first stage of the bull market.

My plan is to go short at the end of next week or the week after that at 51$ or higher when we will be quite late in the cycle
5 months ago
Comment: Anyway the weekly chart supports the 2nd scenario ( brekout to 55-60)
It looks like a perfect bull flag.
snapshot
5 months ago
Comment: The only thing doesn't support the breakout idea is the volume. It was low this week...
zhipengcfel
5 months ago
Nice! I am bias on green one. After it finishes the five waves up, it might undergo a large correction following.
Elliott wave analysis on oil and trade opportunity (2016-07-02)
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faylee
5 months ago
once it can fall to $37, I think $27 is possible.
+1 Reply
johnmad PRO
5 months ago
Shown on my Chart i have Square marked on the 2-4 line of which is my Take profit Target , if we break that 2-4 line then i have a possible Wolfe Wave and price should reach 52.08 area .
I do agree with your fall in price and have marked my possible target low and this going to surprise most traders as you said , my low target is a calculated point of my own discovered Harmonic Pattern .
snapshot
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webmiztriz PRO
5 months ago
excellent analysis... thank u ;)
+1 Reply
walgharib
5 months ago
you mean no more short this week? i noticed that there was strugling to break $50 last Firday
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chartwatchers PRO walgharib
5 months ago
I would wait next week. Timewise we are coming to the top of the intermediate cycle. The top could have been at 51.50 , or we break and have one more powerful rally up to 55-60. If you go short you have to survive a pwerful 10$ rally in the next 2-3 weeks. That's not funny even with a small position.
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chartwatchers PRO chartwatchers
5 months ago
**** might have to survive
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jackcrudeoil
5 months ago
Hi chart..i entered in a short position this friday..so what do you suggest??sell on monday and switch in a long position or hold the shorts??thanks for your reply and your analysis
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chartwatchers PRO jackcrudeoil
5 months ago
I would put a stop above 51.50$. I would use it as a hedge , dont let the long and short come to "square" . At 55-60$ I would close the long -at the daily cycle top - and ride the decline with the existing short position.
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harilaos
5 months ago
its rather small flag, kind regards, Harry
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nexuz
5 months ago
looked like a falling wedge to me so i shorted friday before i read your analysis :) thinking now about hedging the postions or just close it down. Also ceck out monthly oil chart we got a nice reversal there thats why i shorted the first way

H4
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Monthly
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chartwatchers PRO nexuz
5 months ago
Yep. The June candle is bearish. The july could be a red one also. But there is 30 days to print it.
This monthly is way too big for me. If you trade based on this you should be sitting in a position for years. :)
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nexuz chartwatchers
5 months ago
yep thats true :) had to admit i thought we would break down on the first of july instead of jumping up nearly 100 points before close. i hope we will get a small retracement on monday then im going to close the shorts. i also thought about hedging if we go above 50 but im not used to do that so im feeling better with closing it down and taking the loss instead of hedging.
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Robertgal74
5 months ago
What are your thoughts on the chart completing the right inverted shoulder?
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watsonzou26
5 months ago
Based on last Friday's price action, i am bias on your green one, too. If we take a look at UK oil, the price broken down trend line. We should see a wave 5 coming soon.
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andrej123456
5 months ago
Good chart as always, but my opinion is: I think we cant go back to 37 without much more stronger dollar or supply glut (last eia was much bigger drawdown then expected). At 50 and 51 is very strong resistance , it looks like investors are shorting it from there so it cant rally yet. In my view it doesnt have to go up ur down it can just in 45-51 for some time. that could be the reason of the low volume.
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TomasAdam
5 months ago
Hello, going to the 40?
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jackcrudeoil
5 months ago
Hi chart..what do you think about oil??what happen today? It's time to go short??thanks for your reply
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haug01 PRO
5 months ago
USOIL is testing it's support at $46 for the third time since June (falling wedge as noted above). If it breaks below $46, should we go short? What is the next support? I am mildly short PBR now.
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chartwatchers PRO haug01
5 months ago
I would wait what's happening in the US markets today.
I'm still long in usoil since yesterday
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ma.sanjuy
a month ago
Arpil.... just was refreshing your old post. I can see how accurate yr predictions are :)... I think you may consider using the above chart.... for further updation. Rgds/
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