Bottom line:  WTI Crude bearish structure remains intact for now as it hits initial Fibonacci extensions below 28.00. Corrective rallies are possible from here but downside potential remains.

Technical Analysis:

WTI Crude remains bearish against 55.00 levels, but could soon be approaching a major support just below the 26.00 mark. WTI Crude is very close to completing a corrective zigzag wave that had begun since 147.00 levels in 2008, according to the weekly charts. We present the larger degree corrective wave counts below. The drop between 147.00 and 33.00 was an impulse, and the first wave of the corrective decline. The subsequent rally was in 3 waves between 33.00 and 114.00, the second wave of the correction. The last wave within the zigzag correction had potentially resumed from 114.00 and has already terminated waves 1, 2, 3 and 4 at 75.00, 112.00, 26.00 and 76.00 respectively. The chart displayed here is since 76.88 highs and it is the 5^th wave in progress. It is expected to print below 26.00 levels and complete the multiyear corrective drop in WTI Crude before turning higher again. If we further sub divide the wave counts since 76.88, Waves (1) and (2) has terminated around 42.40 and 65.62 respectively. Since then Wave (3) seems to be in progress and might have terminated below 28.00 yesterday. Going forward, downside remains limited for the entire corrective drop to complete and WTI Crude turning bullish thereafter. Traders might be willing to take some profits on the short positions initiated earlier and remain flat for a while. The commodity might print yet another shallow low below 26.00 levels and reversal sharply. Watch out for bullish divergences on the 4H and Daily time frames accompanied with fresh lows, that could be a potential signal to initiate longs again.

Prepared by

Harsh Japee, Technical Analyst.

WTI Crude

Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.

Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.

MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区，免费跟随高手做交易！

免责声明：本文系转载自网络，如有侵犯，请联系我们立即删除，另：本文仅代表作者个人观点，与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实，对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺，请读者仅作参考，并请自行核实相关内容。

著作权归作者所有。
商业转载请联系作者获得授权，非商业转载请注明出处。