Elliott Wave 5.0 "Reboot"

Wednesday, March 2, 2016

WTI Daily Chart Potential Bear Trap Review

When a wave count hesitates in its development, I try to look for an alternate as quick as I can. 
Most of the time I am mentally running several wave counts all the time, so it takes very little to switch once the wave counts start to fit better. 

The potential for us to be in a triangle 4th wave is very high, which means that oil must fall to a new bear market low before it can crank up again. I would not expect it to be very long as my wave 1 is the shortest wave already.  It would be a sick joke if oil did crash to $20 but maybe it will stop at $21 just to be different. 

We just finished with a move to $34, so $21 would have a nice Fibonacci ring to it. Besides the 1.618 ratio between the even Fibonacci numbers,  I also use the 1.382 number for smaller Fibonacci numbers. In this case $24.60 could also be a target. To the upside $34x1.382= $46.99 which is as good as $47 as another upside target price.  Any new low that may still happen,  does not change the bigger picture nor does it change from an Intermediate degree bottom to a SC or Cycle degree bottom.