Good afternoon team,
Everything is tracking well at the moment, AUDUSD, USDJPY and the UK100 all in the green. We are now turning our attention to Crude Oil as we don’t believe the full correction has played out just yet.
Crude Oil (USOUSD or XTIUSD or WTIUSD) 1 Hour Charts
We can see a five wave structure decline from the top of wave 3. Based on Elliott wave theory it would suggest the C wave should also have 5 sub-waves. With this in mind, we can look to target anywhere from 57-50. The overlapping nature of the recent rally would also suggest correction rather than trending.
Crude Oil 1 Hour Charts
We can see a trend line tag (blue line) at 63.24, this is a broken trend line on the longer-term trend.
Trade Setup: SELL Market Execution, current price 62.70 (Focus Markets Price), stop loss 64.30 and take profit 58.70.
Stop loss: 160 pips
Take profit: 400 pips
Focus Markets contract size:
1 Contract = $1 USD per pip
Keep in mind pricing may vary depending on your broker.