Elliott Wave Analysis On Crude OIL And GBPUSD

By: Gregor Horvat | Wed, Nov 16, 2016
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Crude OIL

On the intraday chart of Crude OIL, we are observing a nice minimum three wave rise to the upside unfolding from recent 42.18 low, with first wave A potentially already completed. As we see on the chart wave A is constructed by five sub-waves, meaning a possible three wave correction may be around the corner in the second wave B. If that will happen, then we may expect a nice region of support to take place around the 43.80-44.75, where some Fibonacci ratios can take price higher into wave C.

Crude OIL, 1H

Crude Oil 1-Hour Chart


GBPUSD

Cable is currently trading quite lower, probably undergoing a minimum three wave correction from recent 1.2673 highs, where we labeled end of wave 5). If that is the case, then we can see first wave A) already completed as an leading diagonal, followed by a intraday bounce, that could be part of the second corrective wave B). The ideal resistance area and reversal zone for this corrective wave B) could be around the 61.8 Fibonacci ratio, from where bears may again take over.

GBPUSD, 1H

GBP/USD 1-Hour Chart

When diagonal triangles occur in the fifth or C wave position, they take the 3-3-3-3-3 shape that Elliott described. However, it has recently come to light that a variation on this pattern occasionally appears in the first wave position of impulses and in the A wave position of zigzags. The characteristic overlapping of waves one and four and the convergence of boundary lines into a wedge shape remain as in the ending diagonal triangle. However, the subdivisions are different, tracing out a 5-3-5-3-5 pattern.

A Basic Leading Diagonal:

Idealized Elliott Wave Basic Leading Diagonal

 


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Gregor Horvat

Author: Gregor Horvat

Gregor Horvat
www.ew-forecast.com

Gregor Horvat

Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of www.ew-forecast.com, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on: SafeHaven.com, FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At www.ew-forecast.com he helps clients and educate them about the Elliott wave prinicple and how to label and track unfolding patterns in real time.  His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty however is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators.

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