Crude Oil (CL) has formed a double top formation and the recent upswing seems to be a W-X-Y formation. The stop is set above the most recent support and resistance level (see where the tails of the 2 circled candles end).
This could be a third wave down (but I do expect upswings as it goes down) and thus the first target is an obvious support zone.
This could be a third wave down (but I do expect upswings as it goes down) and thus the first target is an obvious support zone.
Comment:
CL has gone above my targeted stop. However, the upmove is not convincing. But suggest to close out and wait for clearer signs.
Trade closed: target reached:
I had closed my short near the low and went long.
