We identified an upside breakout for WTI oil in November 2017. The entire setup was complex and traded for 1.5 years sideways. Our forecast resulted in an attractive trading setup with a very tight stop/loss and attractive upside potential.
The WTI contract reached almost $80 per barrel before correcting. It reached its high on October 3rd, 2018. We sent the very first chart below on October 24th to our clients. That update concluded: “The bullish cycle in crude probably ended three weeks ago. This interpretation is in line with our cross-market interpretation. The next piece in the puzzle is confirmation of this interpretation. The next hints with regard to confirmation are a fading three-wave correction without a new recovery high and a break of the equivalent red line in Brent crude. We are aware that a similar setup existed in late 2007. However, the main difference was that there was no break of important mid-term trend supports in 2007. We turn bearish on crude and will be looking for attractive risk/reward opportunities to sell the rally.” Prices plunged further and reached our intermediate target quickly.