OIL Elliott Wave Analysis: Correction Within Downtrend

By: Gregor Horvat | Wed, Jan 15, 2014
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OIL Daily

Crude oil turned perfectly lower in the last two weeks from 100-101 resistance region where we highlighted a coming reversal. Price already reached new low, just beneath wave 3 which opens the door for lower levels in current wave 5. We expect further weakness, down to 86.00 in the next few weeks as long as 100.70 holds. However, be aware of a pullback in the next few trading days, back to 94-95 region before downtrend resumes.

OIL Daily Elliott Wave Analysis

Crude Oil Daily Chart


OIL 4h

It seems that crude oil is finally forming a reversal that we have been looking for after five legs down from above 100.70. We think that current leg up represents part of a deeper corrective retracement, labeled as wave (ii) that may reach 94.25 maybe even 96.00 area before downtrend may resume again. Keep in mind that this market has been falling strongly lately, so contra trend move or larger pause should not be a surprise.

OIL 4h Elliott Wave Analysis

Crude Oil 4-Hour Chart

 


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Gregor Horvat

Author: Gregor Horvat

Gregor Horvat
www.ew-forecast.com

Gregor Horvat

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/

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