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My Bias: topping in a large correction wave [4]. Wave Structure: Double combination higher in wave [4] red. Long term wave count: wave [4] target $70
After a week of indecisive action in crude, the time has come to change tack and sail with the wind again!
Although the wave count in crude has worked quite well over the last month, the current price action has not matched what was called for in the wave count.
At times like these it serves well to have a viable alternate wave count in the sidelines ready to activate if needed.
Now is one of those times!
You can see on the daily chart that the upper target for crude is in the region of $70 in wave C of [4].
I have switched to the alternate wave count in crude today following continued corrective downside action. The current wave count sits at a very pivotal point 'in the price structure. With a possible third of a third wave up, on the cards over the next few weeks.
On the daily chart you can see the price target for wave [4] red lies at about $70 and change. On the 4hr chart the price structure has possibly completed wave 1,2 in blue and wave [i], [ii] in brown. with wave [iii] on the verge of starting.
On the short term chart waves (i) and (ii) in grey are still under way. Wave (ii) grey is tracing out a flat correction as shown.
53.11 is the pivitol level from this point on, I now expect this level to be broken soon as wave [iii] brown gets underway.
So,
Over the next weeks action; Watch for a short decline to complete wave (ii) grey. At that point looks for a bullish break of the wave '1' high to confirm wave '3' is underway.
Read more by Enda Glynn
