Crude oil jumped towards 63.00 and tested the upper side of a 2019 trading range where upside was limited, and a new leg lower started developing. We labeled that same leg down as wave D, as part of a bigger complex correction, which fully developed and pushed price into the final leg E of a triangle structure, towards the 57.00 region. Potential resistance/bearish turn for oil can now be near the 58.0/59.50 zone.
Crude oil, daily
On the 4h time frame chart of crude oil we are tracking a double zig-zag in the making from 50.91 lows, which is part of a higher degree wave E of a triangle. We are specifically tracking the final A)-B)-C) move higher on energy, which can face resistance/bearish turn near the 58.5/59.6 region. A strong drop would suggest a completed correction, and further weakness.
Crude oil, 4h