Crude oil could be nearing the end of a corrective B wave. Price just touched the 0.5 extension at 52,51 for what could be wave 5 of C of B but could also touch the 0.618 extension at 52,70. A drop below 51,31 would go some way to validating this idea as it rules out what could be an impulsive 5 move upwards.
Last Friday price broke down a channel. I am not sure if it was a real break down or not. So, I will watch 52.20 – 52.50 range. If rejected there, go short with 49.80 target. But if consolidation takes place, the price will likely come back into channel. In this case, consider longs with target $55 a barrel.
Could be a triangle forming in crude oil before another leg down.
Price can make pullback to $50 Near that level, we can reopen Buy. Because Middle — term trend is still bullish and price didn't hit its goal $53.80 After 100 like I will write entry/exit points, answer on all question and will do all updates.
US Oil approaching a very important key level $50.046 I wait how price will react on that level that why I have 2 trading scenarios at this moment. 1. Open buy if the price will break up $50.046 and fix above it. 2. Open Sell if the price will make fake broke of $50.046 and close under key level. Under I will write more about 2 scenarios separately.
Bit more detail on this idea > Could get a simple ABC to .382 level, or a more complex correction (WXY, or even WXYXZ) to a higher fib level before breaking 42.
Update to this idea > Possibly still in wave 5 in ending diagonal
In most trends we see zig zags, which is why on the medium/long term I am bearish on oil, we have just come out of a sudden and dramatic fall, there is a sell the rally mentality, therefore I don't think the oil will fly off in the opposite direction , instead we will see some stability through January and upside to 62 maybe 65 but downtrend will continue in...
There looks to be a morning star candle pattern on weekly chart for crude oil and 5 waves completed at mid 42 level, following from this idea bouncing from the .618 extension > If this is completion of 5 waves from 7690 then its possible that its part of an ABC leg and a correction has started, another leg down below the recent low made at 4220 could happen post...
Update to triangle idea which didn't pan out > Price bounced sharply at 4435 which is exactly 0.618 level so possible that all the sideways price action was an ABC for wave 4, wave 5 completed at 4776 to complete A wave, now in B before the next impulse for C to new highs.
Possibly a triangle forming in crude oil which would indicate B wave with C to follow, part of a bigger correction possibly in the form of WXY or WXYXZ.
I think that Oil can make pull back to $50 I recommend to open Buy near $43.30 — $43.50 if the price will make pullback. Goal $48.20 I will notify if I will open buy entry
Just a theory, not a trade, .382 level at 5560 would be an interesting level to watch
wait to see what is the next candle then You can buy BCO if it doesn't break the support line
Update to this idea > Triangle broke and .382 extension hit. It could be the bottom, or very close (maybe one more extension down) and a move to correct coming up over the coming months.
Update to previous idea > Possible that E wave now completed, or one more push up to upper trendline.
Follow up on this idea > Triangle is well and truly broken and possibly in an impulsive wave 3 now which could end up at the 1.618 extension of wave 1.