WTI: Corrective bounce back is (about to) over
WTI went close to, but did not reached 67.5 (38.2% retracement of the initial leg down) and broke the upward channel downward.
After the breakdown, it retraced almost 78.6% and started to fall again. The retracement was a clear three-wave rise and this means that the bounce back was corrective to the higher degree movement.
Based on Wave 1 & 2, we can estimate the target for Wave 3.
Most common Fibonacci target for Wave 3 = 1.618 x Wave 1: 60.75.
It is not impossible that the three-wave rise was not the entire Wave 2, but only Wave ((a)) of 2.
In that case, Wave 2 will be a Flat pattern, and WTI will bounce back from near 63.6 (Wave 1 extreme) to near 66.5 (previous bounce back area). These targets are preliminary and alternate only at the moment.
After the bounce back though, the end result will be the same: The higher degree trend is down and WTI is likely to see February low.
More charts can be found at www.white6intelligence.com
After the breakdown, it retraced almost 78.6% and started to fall again. The retracement was a clear three-wave rise and this means that the bounce back was corrective to the higher degree movement.
Based on Wave 1 & 2, we can estimate the target for Wave 3.
Most common Fibonacci target for Wave 3 = 1.618 x Wave 1: 60.75.
It is not impossible that the three-wave rise was not the entire Wave 2, but only Wave ((a)) of 2.
In that case, Wave 2 will be a Flat pattern, and WTI will bounce back from near 63.6 (Wave 1 extreme) to near 66.5 (previous bounce back area). These targets are preliminary and alternate only at the moment.
After the bounce back though, the end result will be the same: The higher degree trend is down and WTI is likely to see February low.
More charts can be found at www.white6intelligence.com
