WTI Crude Oil Prices to Rise or Fall: Elliott Wave Analysis

The WTI Crude Oil price is expected to continue its upward trend, according to an Elliott Wave analysis by LiteFinance. The main scenario suggests that long positions should be considered from corrections above $87.70, with a target of $105.17-$115.50. A buy signal will occur if the price holds above $87.70.

On the other hand, the alternative scenario proposes that a breakout and consolidation below $87.70 could lead to a decline in prices to levels between $79.25-$67.00. A sell signal will be triggered if the level of $87.70 is broken to the downside.

The analysis is based on the weekly chart, where a descending correction has likely finished developing as the second wave of larger degree (2), and an ascending third wave (3) is forming. On the daily time frame, the first wave of smaller degree 1 of (3) has apparently formed, and a downward correction has been completed as the second wave 2 of (3).

According to Alex Geuta, the price chart of USCRUDE indicates that if the presumption is correct, WTI will continue to rise to $105.17-$115.50 within wave v of (iii). The level of $87.70 is critical in this scenario as a breakout below it will enable the asset to continue declining to the levels of $79.25-$67.00.