LCrude Will Continue Climbing towards 51.00 at the Very Least

The pinbar that formed on the weekly LCrude time frame had the result that I expected and LCrude has been been moving inexorably to the upside for three weeks now, having formed one small correction. I think it’s quite possible for that rally to continue towards the zone around 51.00 – 52.00, where there is a resistance visible on weekly time frame.

The more optimistic scenario is for a move to the upside towards 65.00 – 66.00, an idea supported by the pinbar formed on the monthly time frame at 34.00, as well as what we know about corrective waves – they tend to form in pairs, with correction between them.

If we examine the monthly time frame we will see a fully formed corrective wave from 26.045 to 51.654, then a retracement after which the move to the upside continued. If we assume that the second corrective wave will be as long as the first one, then that optimistic scenario for a rally towards 65.00 could turn out to be valid.