WTI Crude Might Have Carved a Potential Top At $43.50

18 August 2020

WTI Crude might have finally carved a meaningful top around $43.50 levels. The commodity is trading around $42.60 as we prepare this article, and should be ready to break lower again. Bears are looking poised to push towards $34.50 levels at least.

WTI Crude probable wave counts are as follows: At a larger degree, WTI Crude has been producing a corrective zigzag structure since $147.00 highs (not seen on the chart here). It seems to be into its final Wave C and is close to completing the corrective drop.

Usually, Wave C is sub divided into 5 waves and WTI Crude seems to have completed 4 waves and could be into its 5th wave drop. Within the 5th wave, it seems to have terminated lower degree waves 1 through 4 and might drop one last time.

If the above holds well, WTI Crude should stay below $65.00 going forward and continue to print yet another low after consolidating for a while. High probability remains for a drop from here towards $34.50 and $17.00 levels respectively.

Looking at the lower degree wave structure, WTI Crude might have completed a potential diagonal around $43.50 recently. If correct, prices would drop lower towards $34.50, which is the beginning of the diagonal structure, at least.

Traders might be preparing to initiate fresh short positions around current levels $42.50/60, with protective stops above $43.50 and projected targets towards $34.50 and $17.00 levels respectively. Only a break above $43.50 would delay matters further.

Prepared by
Technical Analysis Team

Disclaimer: This information has been produced by a third party, for general information purposes only, and is not indicative of future results. Abans Global takes no responsibility for its accuracy or completeness. Any opinions expressed do not reflect those of Abans Global. This information does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should seek independent advice before making investment decisions. Reproduction of this information, in whole or in part, is not permitted. Please note: If you are a Professional client, you are not eligible for negative balance protection and you could lose more than your initial deposit.

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