West Texas Crude(WTI )....Positive Swans, Bats and Wolfves

Picking bottoms particularly recently in the oil (WTI) complex, sometimes produces sticky fingers.

That said, one could build a technical analysis case for a bottom formation at current levels.

A) Longer term we have a completion of a Harmonic Bat. (insert)

B) Shorter term turn we have :

1) A completed Wolfe Wave
2) Black Swan harmonic formation
3) An ABCD formation going back to last August.
4) Oct/Nov double top target hit
5) Mildly positive momentum divergence

So how do you play this.

I would certainly give WTI a chance to find a bottom and advance upward

A penetration of 3 of the Wolfe Wave provides an entry point at $73.65(marked)

Then a Wolfe Wave Target is set up for late January at the $85 area.

Using the Black Swan harmonic we get targets as marked.

If this the best way to play bottoming oil ? Probably not but its a signpost to play your favorite horse.

Please note... Fed activity next week, year end illiquidity and Eastern European events should magnify WTI's volatility going forward.

Good Luck and I will update as needed.

Not investment advice, do your own due diligence.

S.

ความคิดเห็น:

Entered at $73.20 (III of WW as discussed). $2 stop. Momentum turned up on the $H

ความคิดเห็น:

We did get a rally to the bottom of the Black Swan target zone... and stopped.
Position closed

ความคิดเห็น:

A little consolidation here... still expect higheer prices.