Crude Oil (WTI) has been labeled with a Leading Diagonal in Intermediate (A) (green), which started in June 2017 and ended in May 2018. Following those sustained bullish sequences, WTI has been unfolding within a larger degree sideways movement, in what appears to be a Flat Pattern in Intermediate (B) (green).
The Flat Pattern structure could unfold in two scenarios, in either a Running or Expanding Flat. In a Running Flat scenario, Minor C (red) would not exceed the end of Minor A (red), while in an Expanding Flat scenario Minor C (red) would pose as a deep sell-off and a sustained bearish impulse. An impulsive move higher than the 74.00 could be a favorable sign for a Running Flat, while a bearish breach of the 62.00 levels could lead towards more weakness ahead for WTI.
The Flat Pattern structure could unfold in two scenarios, in either a Running or Expanding Flat. In a Running Flat scenario, Minor C (red) would not exceed the end of Minor A (red), while in an Expanding Flat scenario Minor C (red) would pose as a deep sell-off and a sustained bearish impulse. An impulsive move higher than the 74.00 could be a favorable sign for a Running Flat, while a bearish breach of the 62.00 levels could lead towards more weakness ahead for WTI.
