Crude Oil is healthy for a bigger recovery after a correction, support is 70-68
Crude oil has been trading south for the last couple of months, but looks like market is now healthy for a recovery.
Recent strong drop in the 4-hour chart, can be also considered as a final spike into new lows, meaning it can be the end of wave (5) of A, so be aware of recovery, especially now when we have nice intrday impulse from the lows that is also trying to break the trendline resistance. So we think that more upside is coming after a current pullback in wave 2, which can be still in progress as an irregular/expanded flat correction that can retest 70-68 support before a continuation higher.
Looking at the intraday hourly chart, Crude oil is coming back down, ideally for wave (C) of a flat correction in wave 2 that can retest 70 – 68 support zone. Wave (C) is a motive wave and it should be completed by a five-wave cycle of the lower degree, so after current subwave 4 pullback, be aware of another intraday sell-off for wave 5 of (C) before a bullish continuation.
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Author
Gregor Horvat
Wavetraders
Experience Grega is based in Slovenia and has been in the Forex market since 2003.
