Elliott Wave View: Correction in oil completed [Video]
|Elliott Wave View of Oil (CL) suggests the cycle from August 26 high has ended as wave II. The correction unfolded as double three Elliott Wave Structure. Down from August 26 high, wave ((W)) ended at 40.22 low. The bounce in wave ((X)) ended at 41.87 high. Afterwards, the commodity resumed lower and ended wave ((Y)) at 36.21 low. This ended wave II pullback in the higher degree. Since then, the commodity has resumed the rally higher.
Up from wave II low, wave 1 ended at 38.45 high. Wave 2 dip unfolded as zigzag correction and ended at 36.67 low. Currently, wave 3 higher is in progress. The subdivision of wave 3 is unfolding as 5 waves impulse structure. Wave ((i)) ended at 37.82 high and wave ((ii)) dip ended at 36.82 low. Wave ((iii)) higher ended at 40.34 high. Afterwards, pullback in wave ((iv)) ended at 39.51 low. Oil can push for another high before ending wave 3 and followed by a pullback in wave 4 later. As long as 36.21 low stays intact, expect the dips in 3,7 or 11 swings to find support. However, oil still needs to break above August 26 high at 43.78 to confirm that next leg higher in wave III has already started. Otherwise, wave II could still unfold as a double correction before upside resume again.
Oil (CL) 1 Hour Elliott Wave Chart
Oil (CL) Elliott Wave Video
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.