To begin with, if you did see my earlier post on Crude, I would want to admit to have counted the waves wrongly.
What i expected to be a third wave top was in fact a wave v top and the pullback i was considering to be wave iv pullback turned out to be a much deeper wave II pullback. If you follow Elliot waves you would have gotten an idea what i am talking about, if not then do not bother.
Here is what is important thing to focus on.
Where is the crude standing on this chart? It is at the most important spot that it could be at right now.
i. this area of 73-75$ zone is a previously tested horizontal support/resistance zone.
ii.$74.09 is the 61.8% retracement level of the May-Sep rally.
iii. this is also a area of support from the lower boundary of the rising channel.
This therefore is the most important confluence zone for crude and the level that will determine whether it will head to the 60$ mark or the 100$ mark from here.
I have made the necessary changes to my wave counts and I am definitely on the $100 team and not the 60$ team.
Wave iii will achieve wave i equality at $107(Elliot wave projection).
On the downside the swing low of 72.22 is the crucial support level to watch out for.
What i expected to be a third wave top was in fact a wave v top and the pullback i was considering to be wave iv pullback turned out to be a much deeper wave II pullback. If you follow Elliot waves you would have gotten an idea what i am talking about, if not then do not bother.
Here is what is important thing to focus on.
Where is the crude standing on this chart? It is at the most important spot that it could be at right now.
i. this area of 73-75$ zone is a previously tested horizontal support/resistance zone.
ii.$74.09 is the 61.8% retracement level of the May-Sep rally.
iii. this is also a area of support from the lower boundary of the rising channel.
This therefore is the most important confluence zone for crude and the level that will determine whether it will head to the 60$ mark or the 100$ mark from here.
I have made the necessary changes to my wave counts and I am definitely on the $100 team and not the 60$ team.
Wave iii will achieve wave i equality at $107(Elliot wave projection).
On the downside the swing low of 72.22 is the crucial support level to watch out for.