US OIL- Pt.1- In a big correction
Updated
Good morning traders!
As we can see from this chart, oil reached an historical bottom during covid, starting a cycle to the upside with a big impulse that completed a descending broadening wedge. Now we believe that we are correcting this impulse with a triple three correction that will conclude at the big volume cluster around the upper trendline of the descending broadening wedge (yellow area).
This last Z wave is unfolding as a zig zag, and we believe that we are currently in the C final wave of this zig-zag.
Looking at smaller timeframes we can see that we may have completed wave ii of C by creating a bearish Ascending Broadening Wedge.
We are therefore opening a short position risking 0.6% of equity at the Stop Loss Level of 77,04. We target at least 70, and we will update below.
Happy trading!
As we can see from this chart, oil reached an historical bottom during covid, starting a cycle to the upside with a big impulse that completed a descending broadening wedge. Now we believe that we are correcting this impulse with a triple three correction that will conclude at the big volume cluster around the upper trendline of the descending broadening wedge (yellow area).
This last Z wave is unfolding as a zig zag, and we believe that we are currently in the C final wave of this zig-zag.
Looking at smaller timeframes we can see that we may have completed wave ii of C by creating a bearish Ascending Broadening Wedge.
We are therefore opening a short position risking 0.6% of equity at the Stop Loss Level of 77,04. We target at least 70, and we will update below.
Happy trading!
Note
stop loss on entry
Note
Kicked out breakeven at @75.14. Restriked at @75.86. Stop loss at 77.05 risking 0.5% of equity.Trade active
Short position @75.86. Stop loss on entry.
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