Oil prices have corrected. Traders tested the Additional Zone 109.03 – 108.82 yesterday. Today, sellers are trying to break that zone out and consolidate below. If they succeed, the correction will continue with a target of 106.85 – 106.41 at the trend’s boundary.
Once the trend boundary is tested, I suggest considering a pattern to buy. If it occurs, we could open long positions in oil with the first target at yesterday’s high. A second growth target will be the upper Target Zone 112.59 – 111.72.
For the trend to reverse down, market participants have to consolidate below 106.41 during the US session.
Trading plan for USCrude for today:
Buy according to the pattern from Intermediary Zone 106.35 – 105.92.
TakeProfit: 110.60, Target Zone 112.59 – 111.72.
StopLoss: according to pattern rules.