USOIL Update

28 Jan

Oil has broken through extremely strong resistance. However, the area is contaminated with strong resistance levels every $2-3 USD per bbl, making the levels technique less effective. In my charts I chose to delete the levels.

Three options are on the table.

1. Bold scenario assuming a shallow retracement in wave B (zigzag, double zigzag, flat, triangle, or combination) followed by an explosive rally to the $100 level (blue labels and lines).
2. The base one is black. The price is about to complete wave c of (w), which will be followed by a complex, long correction in wave (x) (zigzag, double zigzag, flat, triangle, or combination).
3. Green labels indicate a scenario in which the current development is only wave [3], followed by a sharp decline in wave [4], which should enter the wave [1] territory. Given the growing disproportionality, the likelihood of such a scenario is decreasing with each passing day.

Trading Strategy: Hold long positions until the 80 level. Do not add positions. Exit on signs of trend exhaustion (follow intraday updates on social media).

If you're not in position, wait for wave B to form (shallow zigzag, triangle, or flat). If the decline is more pronounced, we will most likely be in the green scenario. If so stay tuned for bottom picking ideas.

Nothing here is advice.