Crude Oil extends lower after midterm break – Wave four pause underway

Gregor Horvat Wavetraders

Crude Oil has seen a sharp move lower after breaking trendline support and slipping below $100 a barrel, as we flagged in Monday's webinar. Selling picked up further after the Democrats' midterm win, with speculation that a US–Iran diplomatic deal may now be more achievable.

On the 1h December contract chart, the decline from the late-October peak looks impulsive. Price has already pushed through the mid-80s, and the bounce we are seeing now looks more like a wave four consolidation or temporary slowdown than a lasting turn.

Crude oil 1h Elliott Wave chart, wave four consolidation below 93.66

Resistance sits near 99.42, while the invalidation for this bearish path remains at 93.66. As long as crude trades below that 93.66 level, the trend stays bearish and another leg lower after this pause remains the preferred view.

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Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

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