Crude Oil (WTI) formed a rising wedge since late November, failing though to reach the mid-November highs, in the $103,00 area.
The highs of 5th of December, at $102,50 could be the high of the future few weeks. The failure to reach the previous highs confirms the bullish weakness.
The rising wedge pattern has a high probability in Crude Oil and the waves confirm an ending diagonal triangle (Elliott Waves) having the internal structure of 3-3-3-3-3.
The most probable outcome of the price action in case of a break down will be as the one formed in mid-November: 1.break – 2.retest – 3.continuation.
There are two scenarios plotted on the chart, depending on the correct T3 trend-line. The $100,00 level is an important level on the future days and the target on the down side is at $98.00, followed by the $95.50 area.
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