Is Crude Oil Headed For $64?
EWM Interactive | May 26, 2015 04:34AM ET
In our previous post about crude oil we thought the “black gold” is in a post-triangle wave 5. That is why we said it was not a good time to go long on crude oil.
Once that fifth wave was over, there was likely to be a reversal to the downside. The chart below shows what the forecast looked like less than a month ago, on April 30th.
Now we could say that wave 4 was not a triangle. Instead, some of the price swings we thought were part of a triangle turned out to be part of an ending diagonal in wave 5. Nevertheless, the count did not change much. We were still expecting a bearish reversal. The chart below demonstrates how crude oil has been developing ever since.
The price of crude oil topped on May 6th. Less than two weeks later, it stood more than $5 lower. The three-wave decline we were waiting for developed as a W-X-Y double zig-zag. Fourth waves usually retrace the third wave to the 38.2% Fibonacci level.
This is precisely the area, where crude oil prices found support on May 19th. So, if this count is correct, wave (5) to the upside could already be in progress. Unless it becomes truncated, it has the potential to take crude oil prices above $64 per barrel.
Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.