Oil may be in consolidation and we have a good setup for a potential ABCD pattern. I would look for resistance at $45.20 and take profit under $44.
With lower lows and lower highs, the chances of the market breaking to the up side are slim, until it creates a new high structure.
Here we have a classic wave to the downside, and after testing the 200 MA, I suspect it will find resistance and begin another leg down. Possible landing spots include the 1.272 retrace or 2027, which is also the March 29th low. However both bright green lines are exactly the same and should the next wave down be the same size it would put the support at the 1.618...
After finding support from the long term uptrend, look for a breakout to $1.95 - $2.04. Prices could then retest trend before legging up again. Notice how a breakout to $1.95, would set a 1.618 extension at $2.42, which also happens to be the last high.
After finding support from the long term uptrend, look for a breakout to $1.95 - $2.04. Prices could then retest trend before legging up again. Notice how a breakout to $1.95, would set a 1.618 extension at $2.42, which also happens to be the last high.
