WTI Oil ? Selling Pressure Resumes ? Targeting $56 and Lower

3 min read


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Dear Traders,

WTI had a wild ride since its January 2018 high.

Price is beginning to show signs of renewed selling pressure. Things are looking bearish in the short-term.

This analysis will take a brief look at WTI price-action and wave counts, as well as highlight potential trade setups.

WTI Taking an Indefinite Pause in its Rally

WTI was on a massive rally during 2017 up until Jan 2018. Longer-Term wave analysis suggests that further gains are on the cards but not before substantial correction. We have seen the beginnings of this in the major bearish price fall during the first half of February which should have completed impulsive Wave A (turquoise) of a bigger correction. (see Daily chart above).

Corrective Wave Structure Warns of More Sell-Off

The bullish move from 12th – 26th Feb can be counted as a corrective Triple ZigZag. Please refer to both, the 4-hour chart (above) and 1-hour chart (below), for detailed wave labels of the bullish swing.

Another impulsive move to the downside is therefore most likely in the short-term, which would complete 1 larger zigzag (turquoise ABC).

We have seen the beginning of the next sell-off swing since Feb 26th. This swing should pickup strong momentum quickly in order to confirm the analysis.

Trade Setups

Moving averages are bearishly aligned and momentum is increasing. All signs point towards bearish continuation at the time of this writing.

Sell positions could be entered here and now, or at the next pullback.

Targets for this move lie below $58 because if this truly is a larger zigzag, then price must break below the end of turquoise wave A ($58.09). A good target zone lies between $56.60 and $54.50 which is a strong previous support.

All the best along your trading Journey


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