OIL, Crucial Wedge-Formation, Huge PLUNGE to Follow Next!

Hello There!

Welcome to my new analysis of OIL. Within the recent high inflation development with continued rate hikes in a lot of economic fields, it has to be mentioned that OIL could be on the brink of major market disruptions especially when the rate hikes continue to rise further together with the DXY printing the next new highs. In this case, I have detected important underlying dynamics within the analytics dashboard and I have put them into perspective to determine what should be considered with OIL in the upcoming times.

As when looking at my chart now, OIL could since May 2023 recover from the crucial bearish wave lows nonetheless this wave does not have a fundamental open interest and volume backing and this is why it can turn any time especially when a massive bearish supply wave is entering the market because of grievous rate hikes and potential new supply-chain disruptions that are going to trigger a supply shortage. Taking these crucial factors into consideration a major bearish decline and bearish momentum acceleration may be just around the corner.

OIL has also formed this gigantic descending channel formation in which it has the major bearish distribution resistances within the upper boundary as marked. The most determining factor here is the massive ascending triangle formation that leads directly into the upper resistance zone and is now about to complete the wave count within the ascending triangle. This means, that as the wave-count directly approaches the crucial upper resistance zone it is going to lead to an increased bearish volatility breakout below the boundaries within the next times.

Once the gigantic ascending triangle formation has been completed it is going to activate the next bearish continuation below the 100EMA and 300EMA. Especially, once the price-action formed the breakouts below the levels this is going to massively accelerate the bearish dynamics towards the lower levels and continue into the bearish momentum direction.

The bearish price dynamic is going to continue till the final targets have been reached and in this case, it will be highly determining how the final targets are actually approached especially when the interest rates continue to rise together with supply-chain disruptions to accelerate this is going to trigger the next bearish waves even below the final target zones.

Taking all the factors into consideration and because of the gigantic ascending triangle, together with the underlying indications with the interest rate dynamic as well as the supply-chain disruptions dynamic I am keeping the symbol on my watchlist and I am going to re-evaluate the situation once important changes happened within the bearish formation.

In this manner, thank you everybody for watching my analysis of OIL. Support from your side is greatly appreciated.

VP

Comment:

UPDATE: WTI is continuing with major pullbacks off the upper resistance cluster level increasing the bearish momentum.

WTI is likely to finalize the whole ascending wedge with the main breakout below the boundary.

Bearish targets and continuations will be doubly active.