Wolfe Wave - CLM3 - Short Term Trade Strategy, 14/05

Its no secret that the strong US Dollar along with the fact that demand for Crude Oil has reduced has pushed prices lower. In this short term trading strategy, we have the CLM3 futures on the H4 chart with a wolfe wave set up.

In the picture below, we see the Wolfe wave trend lines. The blue trend line represents the price projection, while the dotted black trend line above the 'triangle' was the estimated point of price reversal.

Crude Oil - H4 Chart, Short Term Trade Opportunity

As clearly see, price did indeed reverse at the region of 96.56. This marks the end of Wave 5 and the current move is downwards. Based on the above set up, we can expect Crude Oil prices to trade in the region of $85 and perhaps even lower. A target price level of $87.35 would be ideal for the moment and can be adjusted as more price bars are formed.