Elliott Wave Analysis: Crude OIL Trading In Wave 4; More Upside Could Be Seen Soon
Crude oil has a nice bullish structure on a daily chart where we labeled recent pullback down as wave four of a five wave rise from 26.00. We are quite confident that new highs will be seen very soon, so be aware of a rise towards $55 this month. In fact, that fifth wave up would also confirm a significant bullish turn on bigger time frame charts since we know that five wave structures show direction of a trend.
CRUDE OIL, Daily
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On the lower time frame, Crude oil has turned down last week, now trading beneath 46.00 support level but despite some strong bearish momentum in the last two days from 48.30, we see energy in a big corrective set-back. So for now, we will stick with our bullish view, and the reason is a decline from 51.65 which clearly looks corrective because of overlapping price action. It’s an A)-B)-C) move in wave four that could be finished soon. We however, will have to be patient now and wait on bounce back to 48.40 to confirm a low in place. Only then we will be able to look higher into wave five.
Crude OIL, 4H
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