Hello fellow traders,
A bigger triangle as part of a three-wave A-B-C reversal can be unfolding on crude oil in wave B. Now we are tracking final stages of a triangle, so be aware of a drop once final leg E of a triangle fully shows up. A drop below the lower triangle line would be an early sign of a completed triangle, and more weakness into 42.0/39.0 area for a wave C.
Crude oil, Daily
On the 4h chart of crude oil, we can see that energy has moved nicely to the upside nearly two weeks ago and touched the upper channel resistance line from where we can already see a minor reversal. We labelled latest recovery as wave A), which can now be followed by a three-wave A-B-C pullback within a wave B), with possible support near the 53.46 area. Once wave B) fully develops, that is when a new recovery into wave C) of E of a bigger triangle may follow.
Crude oil, 4h