OIL Elliott Wave Analysis: Correction Within Downtrend
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
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