8 - Crash Sequence & Brexit Volatility vs Wave Patterns
The rise in Crude Oil (WTI) and the sustained up-trend between June 2017 and May 2018 has been labeled with an Ending Diagonal in Primary C (green).
Following those sustained bullish sequences, WTI unfolded a series of sideways swings, which eventually encountered an epic rejection in early October 2018. This top has been labeled as a Flat Pattern in Intermediate (B) (red) and the big sell-off has been tagged as an extended bearish impulse in Intermediate (C) (red).
After three months of continuous down-trend and short-lived corrections, WTI eventually bounced off the 361.8% Fibonacci Extensions of Intermediates (A) & (B) (red). The $44.00 area also represents the 61.8% Fibonacci Retracements of Crude Oil’s entire gains ever since February 2016.
The bullish reaction appears to be sustained, in the sense that it could lead towards the creation of an impulse. However, in order for Crude Oil to provide more bullish confidence, it would need to gain support at or around the 49.00 levels, where investors would most likely look for more reliable clues.
A breach of the 49.00 levels could provide room for more down-side, while a support could pave the way for a bullish journey ahead.
Following those sustained bullish sequences, WTI unfolded a series of sideways swings, which eventually encountered an epic rejection in early October 2018. This top has been labeled as a Flat Pattern in Intermediate (B) (red) and the big sell-off has been tagged as an extended bearish impulse in Intermediate (C) (red).
After three months of continuous down-trend and short-lived corrections, WTI eventually bounced off the 361.8% Fibonacci Extensions of Intermediates (A) & (B) (red). The $44.00 area also represents the 61.8% Fibonacci Retracements of Crude Oil’s entire gains ever since February 2016.
The bullish reaction appears to be sustained, in the sense that it could lead towards the creation of an impulse. However, in order for Crude Oil to provide more bullish confidence, it would need to gain support at or around the 49.00 levels, where investors would most likely look for more reliable clues.
A breach of the 49.00 levels could provide room for more down-side, while a support could pave the way for a bullish journey ahead.
