$USO / $CL / Oil have completed a (i)-(ii) off the bottom, with wave (ii) entering into an area of demand that supported price this week, and it is about to begin the very strongest part of the 5-wave fractal in wave (iii), from there it will have a corrective wave (iv) down, then another push even higher in wave (v).
I've highlighted with red boxes the sell zones for each wave and with green boxes the demand zone.
I expect a significant rally starting Monday (or Tuesday at the latest) of next week in oil. I initiated a long position after market hours today.
On a side note, it always amazes me how fractals "predict" news timing events – since the news that OPEC would cut 10 million barrels/day production hit the wire right after wave (ii) completed and just before wave (iii) started (www.cnbc.com/2020/04...ak-opec-meeting.html).
I've highlighted with red boxes the sell zones for each wave and with green boxes the demand zone.
I expect a significant rally starting Monday (or Tuesday at the latest) of next week in oil. I initiated a long position after market hours today.
On a side note, it always amazes me how fractals "predict" news timing events – since the news that OPEC would cut 10 million barrels/day production hit the wire right after wave (ii) completed and just before wave (iii) started (www.cnbc.com/2020/04...ak-opec-meeting.html).
Trade active:
This is a good area to start a position, as long as $CL_1 stays above the prior low, this trade idea is still valid.
Trade closed: stop reached:
$CL has broken support, signaling that wave (iv) is complete on the bounce earlier, and wave (i) of v is in progress – there may still be a relief bounce here in (ii) of v targeting the $23 level, but any rallies will be more muted and should be used as an opportunity to trim longs.