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.
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Author
Gregor Horvat
Wavetraders
Experience Grega is based in Slovenia and has been in the Forex market since 2003.
