Crude Oil eyeing higher resistance after new fresh attacks between US and Iran

Gregor Horvat Wavetraders

After the latest attacks this week between the US and Iran, we are seeing energy prices recovering once again. Keep in mind that this rebound started from the 67–68 area, where we had the gap from March 1, when the US attacked Iran. That was a very important support zone, so this rebound is certainly not a surprise, especially since gaps often act as important reversal areas.

Looking at the updated wave structure, notice that we have only one leg up from the lows so far. This suggests the rally is still part of a higher degree wave four recovery, which could later on extend towards the upper part of our resistance box, to around 79–82. Up there we also see the unfilled gap from the mid June, making it a very important resistance zone to watch.

Overall, we still will expect another selloff into wave five of the larger bearish impulse, as long as the market remains below the 88.81 invalidation level.

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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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