A novel technique for Oil targets based on the Fibonacci fan

FX:USOIL   Crude Oil (WTI)
76 2 2
A new methodology is proposed, whereby correction targets may be identified primarily with the aid of a Fibonacci fan. To construct it we need to determine first the fundamental triangle ABC, which occurs at the beginning of third corrective waves, in addition to finalizing the location of the relevant support line DCE.

Line AC marks the (0) fan guideline, which leads to the critical fan line (2) (marking the end of wave 3) and (hopefully) fan line (4) towards the end of wave 4 at 67.85 (also 38.2% wave 3 retracement). This is expected to be followed by wave 5 directly to the final oil             lows below the level of 35.
2 years ago
Daily shows big bearish div:

4h TF shows we escaped the rising channel and price is being triangled:

Cross of the falling channel where the price escaped from and the red channel we are in now is at fib 0.5-level.
+1 Reply
cfetrader Yahia.Awes
2 years ago
Great charts. I agree with you that a correction to say 54 or even 52 is very possible, being probably followed next with the final rise towards 68 (hopefully; it would be nice if ray (4) and fib. 38.2% works well in this case; I believe that long term we will see levels below 35, unless geopolitics influence the price differently).
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