Elliott wave Triangle pattern on Crude oil Points Higher; 60.0 per barrel is in view

Gregor Horvat Wavetraders

Good day traders!

Crude oil is still trading choppy, slow and overlapping which suggests a bigger Elliott wave triangle correction to be in progress. Specifically we see price trading at the end of corrective leg D of a bigger triangle, that can see limited upside around the 58.30 level. A breach below the lower channel line would suggest a three-wave reversal within final leg E to be in progress. Support for corrective leg E can later be found at the 56.88 level, of a former swing low.

Crude oil, 1h

Below we have the 4h chart and its full development.

Crude oil, 4h

A Triangle is a common 5-wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.

Triangles can occur in wave 4, wave B, wave X position or in some very rare cases also in wave Y of a combination.

Elliott wave triangle correction:

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

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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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