On May 5 I posted a posted a potential short setup that did not pan out

  • In my opinion today there is another potential reversal pattern: A small Rising Wedge could have concluded a Double Zig Zag from the January low, probably establishing the wave (A) of a large Zig Zag
  • Tomorrow I will open a short position in UWTI if  S1 = 48.68 is breached

  • Below S1 there is a “pocket of air” until S2 = 47.39 (Coinciding with the rising 20 dma and a trend line from the April low)
  • If S2 does not hold the target for a wave (B) pullback should be located in the range 44.55 (50 dma) – 43.03 (0.382 retracement)

OIL DAILY CHART

 

  • The negative divergence of the RSI (14) is aligned with the short setup. The MACD has to confirm the bearish signal cross

OIL DAILY OSCILLATORS

 

  • If the bearish setup plays out the potential target for UWTI is located in the range 28.50 – 26.50

UWTI DAILY CHART

 

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