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.

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