USOIL pre OPEC meeting movement / possibilities.Here we have possible movement for USOIL in the next week (until the OPEC meeting).
The blue frame showed that the huge liquidation that happened a few days ago stopped right at the 2.0 WL, with a huge impulse returning back in. That gave us a major pivot (new C) for the orange frame. Price has been following both since. It has currently bounced strong off the ML of the blue frame (almost touching the 0.5 of the orange - energy point)
I believe the following will happen:
1. A small but healthy retrace to the major TL(A) in this swing.
2. If the price continues to respect it, major impulse to break the ML of the blue and 0.5 of the orange
3. Continuation in the swing with big impulses up and small healthy retracements, following the TL(A).
4. OPEC meeting time aligns with the convergence of the TL(A), projected TL(B), MLH (1.0) of the orange frame and 0.5 of the blue frame.
5. There, I expect consolidation and two possibilities: 1. Formation of a new pivot in case of massive selling after the news, dropping to several Support points or 2. Huge impulse up on the OPEC news and continuation on the TL(A) making, quite possibly, a new HOY.
6. However, if we don't manage to pass the blue frame ML and orange frame 0.5, and BREAK the strong TL(A), price might be going to the horizontal TL(C), consolidating there, giving more questions than answers towards more movement. I do think, however, this is a much less likely scenario than the continuous upmove into the OPEC meeting.
Entries:
Long entry @48.60 to 48.75 / Trgt1: 51.25 Trgt2: 53.00+ (after OPEC for people who want to risk it) / SL: Below the TL(A), wherever that is depending on the time of your entry.
I'll be updating maps with each day, following this closely.
Good luck with your trading, stay frosty.
Nick
