From a weekly perspective, Oil has been respecting this yellow trendline since April 2020 and I expect to see a retest to this trendline before continuing its way up for more highs in 2021.
Looking at the 4H chart, Oil's behavior has been 20% impulsive and 80% corrective that's why I expect to see at least a small correction to retest the trendline before continuing its way to the upside.
Also, since its last retest to the weekly trendline, Oil finished 4 waves up and we are currently waiting for it to finish its 5th wave in order to enter a sell position for the correction.
The most likely scenario for Oil may be for it to reach the 76.10 zone (which is a very critical weekly resistance and also is 127.2% = Wave 1) before starting its corrective cycle if it manages to break the 74.20 area. However, if it doesn't manage to break the 74.20 area, we could see the start of the correction from its current levels (74.20 area) as Oil's 5th wave is now = wave 1.
Looking at the 4H chart, Oil's behavior has been 20% impulsive and 80% corrective that's why I expect to see at least a small correction to retest the trendline before continuing its way to the upside.
Also, since its last retest to the weekly trendline, Oil finished 4 waves up and we are currently waiting for it to finish its 5th wave in order to enter a sell position for the correction.
The most likely scenario for Oil may be for it to reach the 76.10 zone (which is a very critical weekly resistance and also is 127.2% = Wave 1) before starting its corrective cycle if it manages to break the 74.20 area. However, if it doesn't manage to break the 74.20 area, we could see the start of the correction from its current levels (74.20 area) as Oil's 5th wave is now = wave 1.
