Crude oil correction is over, time to go long
Hi traders,
Today we want to talk about crude oil. We forecast that the correction of the oil initiated on March 2022 is over and we already have started wave III in the cycle degree (orange). These are the 2 main reasons
1- The expected minimum level for the WXY correction was reached (87.086). We can see clearly that the price has bounced from the Inflexion Zone, the green area. Therefore, we do not need to go further down to consider the WXY structure complete
2- The RSI trendline has been clearly broken. It is one sign that the new bullish cycle has started.
We cannot discard the option that oil makes another low, but we are quite sure the inflection zone will be respected and therefore, crude oil correction is going to end above the 60 USD level.
The last confirmation to ensure we are in the new bullish cycle is to break the highs made in march 2022, but it can take some time for that to happen and, meanwhile, we can take some long position trades trading the lower degree cycles (or Timeframes) structures.
Ideally, you bought Crude oil in the inflection area, but in case you did not, once the price breaks the 94.039, which is the last high created in October, we will be looking for another long opportunity if a clear corrective structure is detected. We will keep you updated.
Always keep in mind that risk management is, at least, as important as the entry-level or the SL. Remember the quote “If you do not manage the risk, you will not have any risk to manage”
The market is always repeating the same type of defined structures. There are only two main wave types: the motive wave and when the motive wave ends it starts a corrective wave. Within them, there are only 3 motive waves structures (Impulse, leading diagonal, and ending diagonal ) and 5 main types of corrective structures (ABC, WXY, Flats, triangle, WXYXZ (triple correction))
Learning them and being able to spot them in the price action graphs will completely change the way you trade as these structures will provide entry point areas, invalidation levels, and targets for the trade.
Have a safe and profitable trading day
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it is only the explanation of what we are going to do and it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Today we want to talk about crude oil. We forecast that the correction of the oil initiated on March 2022 is over and we already have started wave III in the cycle degree (orange). These are the 2 main reasons
1- The expected minimum level for the WXY correction was reached (87.086). We can see clearly that the price has bounced from the Inflexion Zone, the green area. Therefore, we do not need to go further down to consider the WXY structure complete
2- The RSI trendline has been clearly broken. It is one sign that the new bullish cycle has started.
We cannot discard the option that oil makes another low, but we are quite sure the inflection zone will be respected and therefore, crude oil correction is going to end above the 60 USD level.
The last confirmation to ensure we are in the new bullish cycle is to break the highs made in march 2022, but it can take some time for that to happen and, meanwhile, we can take some long position trades trading the lower degree cycles (or Timeframes) structures.
Ideally, you bought Crude oil in the inflection area, but in case you did not, once the price breaks the 94.039, which is the last high created in October, we will be looking for another long opportunity if a clear corrective structure is detected. We will keep you updated.
Always keep in mind that risk management is, at least, as important as the entry-level or the SL. Remember the quote “If you do not manage the risk, you will not have any risk to manage”
The market is always repeating the same type of defined structures. There are only two main wave types: the motive wave and when the motive wave ends it starts a corrective wave. Within them, there are only 3 motive waves structures (Impulse, leading diagonal, and ending diagonal ) and 5 main types of corrective structures (ABC, WXY, Flats, triangle, WXYXZ (triple correction))
Learning them and being able to spot them in the price action graphs will completely change the way you trade as these structures will provide entry point areas, invalidation levels, and targets for the trade.
Have a safe and profitable trading day
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it is only the explanation of what we are going to do and it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Trading the Right Side team
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All our links: bit.ly/m/TRS
NEW Free telegram channel: t.me/tradingtherightside
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