Big Correction on Crude Oil Points Lower – Elliott Wave analysis

Intermediate

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

OILUSD 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

OIL chart

Elliot Wave Technical Analyst

Gregor Horvat is based in Slovenia and has been in the Forex market since 2003. He has been working for Capital Forex Group and TheLFB.com.

He is the owner of www.ew-forecast.com, which prov...continued

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