Written by www.ew-forecast.com |
Oil made a sharp reversal from 112 two weeks back which we think it’s wave A, first leg of a three wave down in wave 4) that is part of a larger uptrend. Ideally recent recovery from 104.20 was still only a second leg, labeled as wave B so we need wave C down before market may complete a contra-trend movement. Notice that price recently fell slightly through the lower support line of a wave B channel so it seems that wave C is in progress, but based on minimum expectations we will see a three wave fall back to 106.80.
OIL 4h Elliott Wave Analysis
On 30 min, Oil reversed nicely lower from 110.70, from 78.6% retracement area where wave B rally may completed a recovery. The reason is recent sharp decline through the channel line that could be an impulse in progress. If we get a five waves down in wave (i) or (a), then traders may look for intra-day shorts set-up in wave (ii)/(b) retracement.
OIL 30 Min Elliott Wave Analysis