A sharp rally on crude oil from 91.70 and through the falling channel line suggests that market already completed a larger five waves down in red wave 3. If that is the case then we know that current leg up is only first leg of a minimum three wave rally up in wave 4) that is expected to retrace back to 98.80, where we see a former wave four of a lower degree and also 38.2% retracement level compared to red wave 3) distance.
Crude Oil (Jan 2014) 4h Elliott Wave Analysis
On Intraday Chart: sharp rally on Crude Oil yesterday to 97.50 suggests that temporary low is in place and that market is heading higher in three waves; black A-B-C in wave 4). At the moment we see an incomplete wave A so we expect to see higher levels, maybe test of 98.30 in the next few sessions.
Crude Oil (Jan 2014) 1h Elliott Wave Analysis
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