WTI Elliott Wave technical analysis [Video]
|WTI Elliott Wave technical analysis
Function - Counter-trend.
Mode - Corrective.
Structure - Zigzag.
Position - Blue wave x of Y of red wave (B).
Direction - Upwards for blue wave y of Y of (B).
Details - Bullish response shows the probable end of blue wave x of Y. Blue y of Y is progressing and expected above 82.
WTI (West Texas Intermediate) crude oil closed on a bullish note on the 13th of March and has continued its upward trajectory, inching closer to surpassing the 80.85 resistance level as it moves towards higher price levels. Through a comprehensive analysis using Elliott Wave Theory, we can anticipate further upward movement in the context of a bullish correction from the low of 67.81 to the high of 83.2. Understanding the dynamics of this move is crucial for traders seeking opportunities to enter the market before the broader bearish trend resumes.
Examining the daily chart reveals a long-term trend that suggests a corrective pattern unfolding, likely forming a zigzag wave structure labeled as (A), (B), and (C) of blue wave Y. This corrective phase constitutes the third leg of a larger double zigzag pattern that commenced back in March 2022. Presently, the market is undergoing an upward movement, identified as a double zigzag wave (B) originating from the low of 67.81, with a projected target of 83.25, representing an equal leg extension.
Zooming into the H4 timeframe, it becomes apparent that wave (B) is unfolding as a double zigzag pattern denoted by blue waves w-x-y (circled). Waves w and x have likely concluded, with the latter terminating around 76.83. The ongoing phase, blue wave y, is anticipated to extend further in another double zigzag pattern, aiming for the 83.2 target. Despite encountering resistance around the key psychological level of 80, there's a growing expectation for a breakout above it in the near future.
Traders should anticipate a potential wave (b) pullback upon the completion of wave (a). Should this correction materialize, it could provide traders with an opportunity to enter the market for wave (c), targeting the 83.25 level, with the invalidation level set at 76.83. This intricate analysis offers insights into the probable trajectory of WTI crude oil prices, enabling traders to strategically position themselves in the market amidst the ongoing wave dynamics.
WTI Elliott Wave technical analysis [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.