Crude Oil Elliott Wave: Sliding into support
|Executive summary
- Crude oil has been consolidating the May rally.
- We suspect a bounce rally may develop above $64.03.
- A break below $64.03 opens the door to $58.50.
Current Elliott Wave analysis
The analysis of Crude oil on the daily chart suggests that we are observing a corrective consolidation pattern. There are several options of patterns that could be developing. I suspect this is a symmetrical triangle where the wave (c) of the triangle is complete or nearly complete. This current decline would need to finalize above the wave (a) low of $64.03.
Under this Elliott wave count, a small rally in wave (d) would develop then another small decline in wave (e).
Once the triangle is completed, then a rally to retest the new all-time high near $77.10 and possibly higher levels.
There is a support trend line floating near the current price that may support and cause prices to bounce higher.
If Crude oil were to fall below $64.03, then we’ll consider a larger bearish zigzag pattern unfolding to $58.50. This price level of $58.50 represents the 100% Fibonacci extension of wave (a).
Bottom line
Crude oil appears to be nearing the end of wave (c) of ((iv)), a symmetrical triangle. Once the triangle pattern is completed, then a rally is anticipated to retest $77.10.
If $64.03 were broken to the downside, then Crude oil may target $58.50.
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.