Crude Oil can resume to 70-72 support
|On a daily chart, we see a drop in crude oil from 130 area as a five-wave move within wave A that bottomed at 62 - 57 support area. It was a strong drop and spike back in May, when energy bottomed, so we are tracking a higher degree correction from there; wave (B), which can be much higher than firstly thought; there can be room for 100. And the reason is a strong bullish trend back in September, which is looking impulsive, labeled as completed A, so be aware of more gains after current deep set-back in B is completed.
Looking at the 4h time frame (right) oil is coming down despite OPEC that can be trying to stabilize the prices after countries agrees to deepen voluntary oil output cuts down to 70-72 area as recent bounce to 79/80 resistance unfolded as subwave (4). If we are correct, then there can still be some itneresting bounce-back later this month.
Get Full Access To Our Premium Elliott Wave Analysis For 14 Days. Click here.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.