Elliott Wave Analysis: Completed Correction On Crude Oil Points Higher

By: Gregor Horvat | Wed, Dec 14, 2016
Print Email

Sharp reversal to the upside on Crude Oil gives us an idea about a completed three wave correction in wave B) or 2). If that is the case then recent strong upward action is a sign of stronger prices to follow into wave C) or 3). We could now expect a five wave move to develop in the mentioned wave to around the 66/68.00 zone. A decisive break above the 52.24 level would be a confirmation for higher prices to follow.

Crude OIL, Daily

Crude Oil Daily Chart

On the lower time frame we can see Crude oil trading in a new uptrend, with red waves 1) and 2) completed and extended wave 3) in motion after a bottom had been found at the 42.88 level, where bigger correction had ended. As such we now think price could be trading at the middle of wave 3) specifically in minor wave iv), after a recent drop had occurred from the 54.48 level. That said so current price action could be unfolding wave iv, that could point towards higher levels after its completion. The upper corrective channel line could now provide some support and even push price higher above the 53.87 level within wave 3.

Crude OIL, 4H

Crude Oil 4-Hour Chart

 


Interested in our services? Then visit our homepage at www.ew-forecast.com and take a glace at some of our charts. You can even subscribe to our Twitter account -> @ewforecast

 


 

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.

EW-Forecast: To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!

Please be informed that information we provide ARE NOT trading recommendation or investment advice. All of our work is for educational purposes only.

Copyright © 2013-2017 Gregor Horvat

All Images, XHTML Renderings, and Source Code Copyright © Safehaven.com