Crude Oil reached a very critical area ($62) and started retracing back down. Looking at the 2H chart, crude oil finished 3 waves down and now we are currently waiting for wave 4 to form. You may have noticed from my posts that wave 4 is usually in the form of a horizontal stage and we can never determine and predict the formation of a horizontal stage.
As of now, we are waiting for wave 4 to develop and I expect to see it retesting the previous wave IV of 3 before continuing its way down for wave 5 possibly reaching the 61.8% Fibonacci Extension as a first target (56.20) which also the area where wave 5 will be exactly equal to wave 1.
Breaking 56.20 will push crude oil towards the 78.6% Fibonacci Extension level (54.68) and the 100% Fibonacci Extension level (52.74).
- First Target: 52.20
- Second Target: 54.68
- Third Target: 52.74
As of now, we are waiting for wave 4 to develop and I expect to see it retesting the previous wave IV of 3 before continuing its way down for wave 5 possibly reaching the 61.8% Fibonacci Extension as a first target (56.20) which also the area where wave 5 will be exactly equal to wave 1.
Breaking 56.20 will push crude oil towards the 78.6% Fibonacci Extension level (54.68) and the 100% Fibonacci Extension level (52.74).
- First Target: 52.20
- Second Target: 54.68
- Third Target: 52.74
