Oil compressing before a "pop" down to $42
It currently appears that the market is forming a triangle sideways correction.
The key is that waves (d) and (e) of this triangle patterns do not make any new lower lows or higher highs as set by the preceding waves (b) and (c).
I will be looking to trade this when we see a bounce towards wave (e), with stops places above the wave (c) peak.
At this stage it isn't yet possible to denote the bottom trend line of the triangle as there is only one point formed, namely wave (b)... so please understand that the illustrated trend lines are only 50% correct, and the bottom is speculative for illustrative purposes.
But again... the key is that any rally up should NOT exceed wave (c) peak... and I expect a decline lower after this to target $42 a barrel.
The key is that waves (d) and (e) of this triangle patterns do not make any new lower lows or higher highs as set by the preceding waves (b) and (c).
I will be looking to trade this when we see a bounce towards wave (e), with stops places above the wave (c) peak.
At this stage it isn't yet possible to denote the bottom trend line of the triangle as there is only one point formed, namely wave (b)... so please understand that the illustrated trend lines are only 50% correct, and the bottom is speculative for illustrative purposes.
But again... the key is that any rally up should NOT exceed wave (c) peak... and I expect a decline lower after this to target $42 a barrel.
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