Elliott wave analysis On Crude Oil and S&P500

Gregor Horvat Wavetraders

Good day traders and a happy new year!

Crude oil is bullish and unfolding a nice clear five wave pattern, which we labeled as a higher degree wave 5) in progress. Current strong five-wave rally that is on display away from 57.60 level can be labeled as black sub-wave 3 of 5), with potential top and resistance coming in at around the upper Elliott wave channel line. From there, a new three-wave pullback as black wave 4 can follow, and search for potential support and a turning point region around the 60.27/60.71 level.

Crude oil, 1h

S&P500 is strongly and sharply turning higher, away from 2672 base for former wave 4. Current strong rally can now approach levels near the 2710/2715 region, where Fibonacci projection of 161.8 sits and projects end of black wave 5 and resistance.

S&P500, 1h

Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All our work is for educational purposes only.

Author

Gregor Horvat

Wavetraders

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

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