Technical outlook and chart setups:
Crude rallied in an impulse (5 waves) manner from 38.00 to 50.00 earlier. Please note that the current drop is corrective (3 waves). It reached the Fibonacci 0.618 support level as depicted here. If this count is correct, the next rally could push crude prices to 56.00 and higher in coming sessions. It is hence recommended to initiate fresh long positions with risk at 38.00. Immediate support is seen at the levels of 41.75 followed by 38.50 and 38.00, while resistance is seen at 47.00 followed by 51.00/52.00.
Trading recommendations:
Initiate long positions now, stop is at 38.00, a target is open.
Good luck!
