Earlier I have posted an idea to short WTI.
It is going down as expected, but so far the structure is not very clear. Checking the move in UKOIL, I identified an impulse followed by a running flat.
If it is the reversal as planned, I would expect two bearish scenarios:
1. Price is moving in a local third wave, therefore stop loss may be move slightly above the resistance, presented by the extreme of wave 1 (there should be no overlap bu the next pullback, if this scenario plays out).
2. This scenario is more comfortable for me - price may form a second smaller consolidation within the current m5-m15 range (overlap is ok), the border of an assumed base channel + 50-62% retracement in the smaller wave 2 should provide a ceiling. Then price will burst down with a couple of further add-ons to current entry
Good luck!
It is going down as expected, but so far the structure is not very clear. Checking the move in UKOIL, I identified an impulse followed by a running flat.
If it is the reversal as planned, I would expect two bearish scenarios:
1. Price is moving in a local third wave, therefore stop loss may be move slightly above the resistance, presented by the extreme of wave 1 (there should be no overlap bu the next pullback, if this scenario plays out).
2. This scenario is more comfortable for me - price may form a second smaller consolidation within the current m5-m15 range (overlap is ok), the border of an assumed base channel + 50-62% retracement in the smaller wave 2 should provide a ceiling. Then price will burst down with a couple of further add-ons to current entry
Good luck!