Looking at the developing Wolfe Wave on Nymex Crude WTI CL1 Daily Chart. Due to the scale based on this time frame the wave can be used to accurately gauge sentiment, projecting a bullish recovery over the next couple of month. Wave five is well under formation with a projected recovery to $52 by March, just above the 50% Fibonacci retracement level of wave 3 to 2. A projected target of $60 by May 2016. We could see a drop to $24 before the the recovery takes shape, this could be a result of the Iranian sanctions being lifting with the return of Iranian oil exports flooding the market. I believe that this has already been priced into the market. Should conflict arise between Saudi Arabia and Iran, we would be looking at a push to the $250 mark, however I dont believe any conflict is probable, due to the fact the US have made it very clear there will be no intervention in aid of Saudi Arabia should this come into play.
I am now looking for Wolfe Wave entries on smaller time frames such as 15m, 30m and 60m to establish entry points for intra-day trading keeping in mind the bullish sentiment as projected in the above wave.
Short term trading of futures contracts whilst buying long term put options with 3 and 6 month expiration is the plan here to take advantage of the projected estimated time of arrival (ETA) at around May/June 2016.
UPDATE 27.01.2016 06:30 GMT
Moving nicely towards the target as per projection from an entry at $30.
Trading the wolfe 