Good evening team,
We are now ready to go short on crude oil with a possible big play. The move lower initially from the top on crude oil at 68 was in 5 waves. Based on Elliott wave theory, it suggests the C leg will also be made up of 5 waves, completing a 5-3-5 structure. We are looking to position on crude oil expecting a turn lower. This will also play into our long USDCAD trade if all goes to plan.
Crude Oil – 1 Hour Charts
There is also a possible bear flag structure on the cards which should see crude oil break down from the rising trend line support we have been tracking in the technical analysis section of the trading floor. The 38% FIB retracement is providing some resistance in the short term. Targets can be found at the 57.25 all the way down to the 1.618& FIB extension.
Trade Setup: SELL Market execution, current price on FOCUS Markets 63.60, stop loss 65.40 and take profit target 57.40-51.40.
Stop loss: 180 pips
Tale profit: 620-1220 pips
1 contract = $1 USD per pip
2 contract = $2 USD per pip
3 contract = $3 USD per pip
0.1 contract = $0.10 USD per pip