Energy Commodities
#Crudeoil turning lower - Wave A down in a diagonal Crudeoil has been on a tear making new highs in the last few weeks . All this may have ended in a wave 5 of 5 and a major turn seems to have begun. The downmove from the Feb 15th high is clearly a diagonal wave A ( or wave 1) , a correction in wave B ( or wave 2) has completed a few hours back.
As long as the 94.95 high holds , look for an accelerated move at a minimum to 84, this could then lead to a medium turn that will keep crudeoil make new lows. We'll reassess further bearish potential at the later stage.
For now look for a move to the 84-85 handle
CRUDE OIL: Bearish for short termLEADING DIAGONAL: In a leading diagonal , waves 1,3, and 5 are all impulsive in nature or all in corrective form of zigzags. Wave 2 and wave 4 are always present in a zigzag form. A leading diagonal suggests the starting of a new wave & that is why it can develop wave 1 of a impulse wave and a first wave of a zigzag pattern.
Either a larger correction of higher degree or a smaller correction as a ZIG-ZAG corrective wave , whatever the condition crude is going to fall if rejected from the current levels.
TRADING STRATEGY:
AGGRESSIVE PLAYERS: One should go short in the region of 93.5 $ to 94 $ keeping SL of 96$ and look for the target of 88$ and 85-84$ zone .
SAFE PLAYERS: wait for the closing below 92$ & then go short for the target of 88$ and 85-84$ zone .
CRUDE OIL : A possible leading diagonalLEADING DIAGONAL: In a leading diagonal , waves 1,3, and 5 are all impulsive in nature or all in corrective form of zigzags. Wave 2 and wave 4 are always present in a zigzag form. A leading diagonal suggests the starting of a new wave & that is why it can develop wave 1 of a impulse wave and a first wave of a zigzag pattern.
TRADING STRATEGY:
Buy Crude oil : 89-89.5$ keepin SL of 87.8$ look for the target of 93.3-94.3$
Predict Crude oil's next movement with Volume activityPrice action is the Key.
Use Ultra high volume setup/condition for additional confirmation purposes only.
A combination of Daily and Hourly time frames works well.
Highly recommended only if the Daily time frame is Trending.
Lower time frames say less than the hourly chart gives the confused or mixed-signal, so it is recommended to use for overnight positions.
Take trades based on your own risk appetite.
The indicator used is Volume Spread for VSA
Queries are Welcome
💡Don't miss the great sell opportunity in WTITrading suggestion:
". There is still a possibility of temporary retracement to the suggested resistance line (91.59).
if so, traders can set orders based on Price Action and expect to reach short-term targets."
Technical analysis:
. WTI is in a range bound, and the beginning of a downtrend is expected.
. The price is above the 21-Day WEMA, which acts as a dynamic support.
. The RSI is at 44.
Take Profits:
TP1= @ 88.03
TP2= @ 85.92
TP3= @ 82.64
TP4= @ 80.02
TP5= @ 77.42
SL: Break Above R2
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