“b” scenario played into this one, too.
a-) acceptance into balance area denoted above
b-) buyers maintain control into $92.20-$92. Into that event, I will be looking into $93-$92.40 as an area where I would expect some sort of selling reaction. I am currently working with the idea that a breach of $93.20 will likely bring into $94.80 as extended target – Before that $94.20, $94 & $93.60 are key price points.
c-) Sellers keep the pressure into lower areas of value $90.40 as a key price point. I am looking into $89.40-$89, followed by $88.40, $88 and $87.70, as extended targets.
Buyers managed to keep control of the situation. Price flirted a tad above the projected target of $93.20 and crude is experiencing some rejection into $93.40.
Follow up in price action will confirm/reject if the selling is only temporarily or if deeper retracement should be expected.
So far, price broke out of the balance area of $92-$91 into (as in gold) another important vertical development.-
Again, as in the case of Gold, I´m paying particular attention to these type of moves, since it usually provides hints of a bigger move to come, unless certain conditions/reactions take place in the market.
The move is somewhat overextended to the upside, however it is undeniable that buyers are in control (at least for now) and new value areas have been tested/probed.-
$93.20 was an important level I was watching, and unless I see an important and intense selling reaction, I´ll be leaning into more upside.
However, true to my methodology, I am laying out different alternatives to keep in mind.
b.1-) Upside continues. Buyers keep control of the situation.-
$93.80-$93.50 is an important level, followed by $95.30-$94.95 .- Before that, I will be looking at $94.50 & $94 as possible containment levels.
b.2) consolidation between $ $93.825-$92.40 – I´ll keep this scenario but I would not like to see it much below $92.-
b.3) Sellers regain control, thus bringing crude into previous levels.-
Important to note areas are $91, $90 & $89.50.-