Good afternoon team,
We are revisiting Crude Oil after it has set up a corrective pullback in the market. Overall the trend may have turned bearish, however, we are expecting another rise towards the 75-76 resistance which will set up a possible bearish head and shoulders structure. Looking at the counter-trend, they are generally made up of three sub-waves labelled A, B & C. The recent run higher on crude oil is only made up of two sub-waves, therefore we are expecting a final rally.
Crude Oil – Daily Chart
Crude Oil – 1 Hour Chart
Trade Setup: Buy market execution, current price on Focus Markets 69.25, stop loss 65.53 and take profit targets 75-76.
Stop loss: 370 pips
Take profit: 575-675 pips
Pricing may vary depending on your broker.