CrudeOil Technical Strategy: Buy on dip Elliottwave Count: Breakout confirmed. W-X-Y or sequence of impulse wave on reversal
Analysis CrudeOil (CL) is able to break corrective cycle yesterday at 52.64. After breakout, it showed a five wave move towards 53.45 where it met monthly pivot resistance. We were expecting short term set back from this level which can be count as sequence of impulse move (marked in green line) for larger recovery or W-X-Y (marked in lad line). Current market level is providing good level to re-enter into trade with limited stoploss.
Action We bought one position at 52.50 yesterday with stoploss on 51.77.