In my last post on USOil where I gave a brief overview of how I used wave counting to get into a trade where my followers and I just reaped +511 pips in profit (see this post:), I also suggested that this wave (iii) was near its end. Wave counting combined with a good understanding of how support/resistance works and how to apply it allowed me to know when to get out of the trade as well as getting into it. That knowledge is how my followers and I bagged these pips.
In any case, what is Oil to do now is the question. Several clues are giving us some idea. Of course, no one can know for sure what will happen but there are indications that can guide us and give us a good educated guess. Here are a few:
1) Prices are now sitting at/near a MAJOR SR resistance zone and currently is being rejected. Whether it will hold or if prices should break it DECISIVELY is yet unknown 2. There was a completed Crab pattern earlier in this impulsive wave. Prices are now in the PRZ of that crab and testing the top extension which is a derivative of the "golden ratio". But that 3.618 extension does lie past the resistance zone 3. The wave count shows that this wave (iii) is in its final wave v 4. the RSI is indicating an oversold condition
But one thing is lacking right now for me to take a SHORT position is that price action HAS NOT confirmed a top yet. And I do not "top hunt". I'll let prices tell me when it is the right time to go SHORT. And if this is the end of the wave (iii), then wave (iv) follows and that could take this all the way down to $54-55 area where there is another STRONG support zone waiting.....if it does do this, then profits could be more than +600 pips
Hello, I just love the way you count the waves .. heading to my target .. I hope we are correct with our counting .. I thought that after done with wave 3 we went to a Triangle however breaking above my TA left me one choice which is the WTI Crude Oil just did wave A then B is creating a ( abc )Flat wave should end by or around the 62.24 ( approximately) then price should retrace and go back down to close below the high of wave 3 .
I love your view and would be very happy to get your respective professional view to enrich your followers knowledge with your professional experience ..
Please accept my very best regards,
Ahmed
EverythingForex
⋅
@ahmedhamdan, Thanks for the acknowledgement! Although I am quite confident in my count, I will wait for price action to determine when, where and if to sell. Patience is an essential virtue in trading. FOMO is one of the trader's worse enemies.
VIP_Trading_Technologies
⋅
RSI overbought. I'm planning to open a SHORT POS at 68,44 Brent, more or less your 62.24 on WTI
EverythingForex
⋅
@DrMoney, I would not and am not relying on the overbought condition as you know very well, it can remain overbought for a while as it continues to climb. I will wait for price action to confirm a sell.
VIP_Trading_Technologies
⋅
@EverythingForex, Agreed, I was just clarifying the fact that you said OVERSOLD :p when it is just the opposite. A common typo. Let's see what will happen tomorrow with rig count. Cheers
EverythingForex
⋅
@DrMoney, yeah, thanks for clarifying that mistake. I wanted to correct it but by the time I noticed the error, the edit window was over.