Crude Oil Is Bearish Near-term – Elliott wave analysis

Intermediate

Crude oil can be unfolding a big triangle correction in wave B, with price now specifically unfolding sub-wave D. Once all five legs: A-B-C-D and E fully develop, that is when a new impulse lower as wave C may follow.

Crude oil, daily #1

Crude oil chart


On count #2 we are observing a three-wave A-B-C move in play within a higher degree wave B, with price now unfolding an Elliott wave ending diagonal within a sub-wave C, with possible resistance/bearish turn near the 69.80/70.0 region.

Crude oi, daily #2

crude oil daily

Both counts are valid for short term on crude oil.

On the 4h chart of crude oil we can see that price is impulsively dropping from the 65.63 level, giving us strong evidence that a three-wave reversal is in progress. We are tracking wave A of a three-wave move now, which can look for support, and a turn into a temproary wave B correction near the lower trendline (connected from swing low of wave C)). The upcoming wave B correction can later look for resistance/bearish turn near the 60.63/62.1 zone.

Crude oil, 4h

crude oil

Gregor Horvat

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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