General overview for 01/06/2016:
The main count at the weekly time frame indicates the wave C had ended with five waves downward rally at the level of $26.02. This low is the bottom for bigger cycle wave X as well, so according to the weekly Elliott wave count, there is one more wave to the upside needed to complete the cycle in big wave B. Moreover, a clear Reversed Head & Shoulders pattern at the bottom is visible, together with a clear breakout above the neckline. Moreover, at the daily time frame, the bulls had been capped just below the important key level at $51 ( psychological level of fifty dollars per barrel) and only a strong, impulsive rally to the upside might prevent the bearish wave progression to unfold, especially below the level of 42.55. Currently, $51 and 42.55 are the two most important levels for market participants.
26.02 – Long Term Swing Bottom
34.90 – Technical Support
42.55 – Alternative Impulsive Count Invalidation Level
50.00 – Psychological Round Number
50.97 – Technical Resistance | Key Level for Bulls|
All swing traders should trail their buy orders and move the SL just below the 42.55 level. Adding to the existing buy orders is possible only if the level of 51,00 is clearly, impulsively violated.