REACTION IS OVER ?
Long term: Until previous analysis we kept writing:As long as WTI stays above the 54.50$ level, we stay long waiting for the upwards acceleration firstly at the break of 64.30$ and secondly at the break of the 66.70$ level aiming the 75$ level. The 75$ level is a major mid term resistance level where we can realise profits.We proved almost 100% correct,we are now either short aiming the correction zone 57$-55$,or neutral waiting for the completion of the correction,in order to open long positions.Midterms,we are observing the creation of an upwards channel with limits between 64$ and 80$.Until now we have received 10$ profit.As long as oil moves within the limits,we act accordingly.We have now moved towards the lower limit of the channel,trying to downwards exit it.Major support level is the 65$ level.In case of downwards break of it,oil will move towards the 55$ area.We are witnessing the downwards exit of the formation aiming the 62$,58$ and 55$ levels.All targets accomplished,waiting for mid term reaction towards 63$ level.Reaction hasn't started yet,oil at an extremely oversold area,extremes may lead to 42.50$ before strong reaction.We are proving correct,oil near the described downside extremes.Reaction has now started as estimated.First target the 54$ area.Target accomplished,after a short term correction we are expecting a new upwards movement towards 64$.The upwards movement near its end,profits received more than 20$.Estimated start of a new downwrds movement from 64$ up to the 67$ area as an extreme,aiming then the 54$ as a first target.Estimations seem correct,waiting now for the completion of the first leg of the movement.Our estimation proved correct,profits of 10$-13$ received.We now stand at a critical crossroad point ,meaning that either an upwards movement starts now towards 75$ or the downwards break of 51$ will drive oil towards 42$ and/or 33$.
Short term: As correctly described in our last analysis:We can go long at the upwards break of 58.00$ aiming 60.00$.Profits of 2$ received.We can reopen long position at the upwards break of 60,00$ aiming 62.00$.
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