Crude Oil Steps Into A Higher-Degree Correction After We Spotted The Final Wave 5 Of An Impulse

As discussed on July 23, Crude Oil appeared to be completing the final wave 5 of an impulsive move higher following the Middle East escalation, which opened the door for a potential higher-degree corrective phase. CHECK IT HERE

The expected slowdown is now developing, with oil facing a deeper pullback after reaching the projected upside targets. We are currently tracking an ABC correction, which could take some time to unfold and may eventually retrace price toward the 78–73 support zone. At the moment, Crude Oil may still be trading within an abc flat correction as part of wave B.

Oil edged higher after its biggest drop in a week, as Trump said his latest offer of talks to Tehran is Tehran’s last chance and that he expects a full reopening of the Strait of Hormuz. Due to the newly opened GAP, the current decline could still be a subwave "b" pullback, which may lead to another intraday rally in subwave "c" toward both unfilled GAPs in the 88–90 resistance area.

This move could complete an ABC corrective rally in wave B before another decline in wave C toward the 78–73 support zone. However, if price continues straight lower, it would suggest that wave B is already complete and wave C is already underway. In that case, the unfilled GAPs could be revisited later, after the full ABC corrective decline has unfolded.