Oil: Trading In A Correction

Published 2015-11-03, 03:25 a/m

A sharp bounce on WTI last week suggests that market found a temporary bottom, and most likely completed wave (i). We know that after first impulse is done market will make a three wave retracement. For now, we see only one wave up, labeled as wave a) so more recovery should follow after wave b) pullback. Ideally price is now in wave (ii) that will rally up to around 47.00-48.00 area from where we will look for a downtrend continuation.

Crude Oil, 4H

Crude Oil 4 Hourly Chart

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