Crude Oil Futures and Harmonic Butterfly Patterns do mix in this intraday perspective chart.  I’m using an STRenko 20 Bar and price is in between two opposing harmonic Butterflies.

The line in the sand levels aka the level that can cause death of one and life to the other are 58.53 and 55.06.  These are the range levels that comprise the emerging patterns.  There are other harmonic rotations, but until one of these butterflies is invalidated, the line in the sand levels are the important support and resistance targets.

Currently there is a slight upside bias, the longer price can hold above 56.61, the higher the probability of testing the upper line in the sand level at 58.53.   The initial resistance test will be 57.56, but the key level to take out is 58.53, if so, the ideal target for the Butterfly is 59.47 but there is an important scaling point at 58.98.  Scaling points are regions that have a potential to be rejection points, so they are considered targets if already in a position, a level to protect a profitable position, an possible exit point or reversal entry point.  Once price is at the Butterfly PRZ (Potential Reversal Zone aka the harmonic pattern completion target) at 59.47, there’s a potential breach to test 59.86.  A valid rejection of the Bearish Butterfly has retracement targets of 58.53, 57.56 and 55.06 to name key levels.  Let’s say, this Butterfly doesn’t retrace, or retraces a minimal pullback.  Then we have higher targets at 60.67, 60,86 and 61.98.

A hold below this upside bias support level of 56.61 has the potential of shifting the bias to the downside, the initial target is 56.02, below there increases the probability of testing the lower line in the sand level at 55.06.  A break down there invalidates the opposing brown pattern and has another line in the sand level at 54.28 for another important support test.  Once price can break down from there, the ideal Bullish Butterfly target is 53.12 with a potential breach to 52.66.  How much retracement or bounce from there offers clues to whether the extended Crab target of 51.66 will come into play or not.

Happy Holidays, cherish family, friends and loved ones for they fulfill harmonic completions of life!

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