Wednesday 23 May 2018

WTI OIL to top soon?

Hi traders,

The WTI OIL (now at 71.75) is loosing steam and might top soon. Although my target is still the area 74.91-77.13, it might actually top before 74.00


The weekly chart shows the giant a-b-c started in Feb 2016 where 
wave-c is almost completed. Wave-a and wave-b are fully deployed whilst wave-c is in the very final stage.

The monthly chart shows that t
his giant a-b-c is just a retracement wave up (wave four) of the downturn that started in July 2008. Once completed, it will stage an important correction to the South side.

As for the daily chart, i
t displays a 1-2-3-4 (in black). After that  another 1-2-3-4 (in green) highlights four waves of a smaller degree. Once wave five is completed, the whole pattern could reverse course.

Finally, check the arrow in the 4-hours chart: it highlights a candlestick pattern that usually occurs when a top is imminent.

Monthly chart. Click to enlarge

Weekly chart. Click to enlarge

Daily chart. Click to enlarge

4-hours chart. Click to enlarge