We discussed crude oil back on September 9, when prices were recovering from the $68 area and targeting the important $99.60–$100 resistance zone. At that time, the bullish recovery still appeared incomplete, and despite the latest pullback, our broader outlook remains on track. CLICK HERE
Crude oil has since moved lower into a very important support area around $88, which marked the July swing high on the continuation-adjusted contract. This level could now act as support and provide a foundation for another potential move higher.
From an Elliott Wave perspective, the latest decline appears to be forming an A-B-C correction within wave 4, with wave C potentially developing an ending diagonal pattern. This structure could explain the recent loss of downside momentum and the stabilization we are seeing as prices move back above $95.
If the $88 support zone continues to hold, the latest pullback may represent a temporary correction within the broader recovery rather than the beginning of a deeper bearish move. In this scenario, crude oil could be preparing to resume its advance and develop a fifth-wave rally.
The next step is to watch whether buyers can maintain control and push prices higher from current levels. A continuation of the recovery would support the view that wave 4 is nearing completion and that another bullish leg could follow.
Overall, crude oil remains on track with our previous outlook. The reaction around the $88 support zone will be important, but as long as the corrective structure holds and bullish momentum continues to build, we should not rule out further gains in the coming sessions as the market potentially enters wave 5.
For a detailed view and more analysis like this, you may want to join our live webinar today on Monday, October 19 @ 15.00CET: DIRECT LINK.
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