4 hour chart suggests the following:
Crude Oil is either coming into the very final stages of wave 3 with a retrace to begin probably as early as the Sunday evening session, or topping in minor wave b of B with new swing lows to come.
Let’s assume the former is playing out and price is not done with this bullish posture off the Aug 3rd lows. Then price should retrace in standard corrective action to the area of the ($47.59) .236% to ($46.49) .382% fib retrace zone before a short term resumption and completion of this bullish pattern off the August 3rd low in the area of $50.35 to $51.99.
If the latter is true, then the first sign of breakdown will price taking out the 1.0 extension of the Aug. 3rd low which resides at $46.01 in the October contract.
If long, hedging at these lofty levels is certainly prudent risk management.
Disclosure: Short Crude Oil
