Oil. Correction. Trade plan

In the third part of April-2016 OPEC will make a try to agree on fixing current oil production and limit oil supply in the world. I wonder if they will succeed to do it. It will be another crucial decision for the oil market and its derivatives …

Technical analysis of WTI future contracts gives us the following results:

Current contract. 4 hours
• Oil is at least in phase of correction. All Up trend lines were broken.
• H&S pattern is in work. It was activated by breaking neckline. Potential target zone of the pattern is 35-36. At the same time, breaking up 40.5 cancels the pattern.

Reasonable strategies:
1. Look for sell opportunities after upward correction near 39-40 zone.

Clued contract. Daily
• At least correction has started. First downward impulse wave is in place (almost completed).
• IMPORTANT. In spite the fact, that main downtrend line was broken, this wave may be the first wave of main down trend continuation! Keep it in mind.

Reasonable strategies:
1. Short-term. Buying near 32.8% FIBO support zone and try to take correction with the target in (39-40) zone.
2. Mid-term. Sell on correction to small downward impulse. Target is green support zone (30-32), maybe even lower.