Written by www.ew-forecast.com |
Oil has extended it’s weakness through 105.50 support recently where we labeled termination point of wave 4. We know that when this level is breached the larger five wave pattern is finished and that direction has changed, in our case from bullish to bearish mode. As such, we think that sharp fall from 112 represents wave A, first leg of a three wave retracement in wave 4) that may reactrace even back to 102.20 with wave C. At the moment we still don’t know if wave B is done or no, but break of 106.45 support could cause acceleration lower. In such case trader could be interested in shorts for wave C, but keep in mind that we are tracking wave 4) from 112.20 which can also become a complex pattern, rather than a simple zig-zag.
OIL 4h Elliott Wave Analysis
OIL 1h Elliott Wave Analysis
On the Intraday Chart rally from 104.20 is only in three waves contained by parallel trend-lines which is indication for a corrective rally. As such, we suspect that market is forming a zig-zag in wave B that may stop around 109 level. Bearish waves are expected as long as 112.20 holds