Crude Oil With Mid-Term View

Hello traders, today's article is about crude oil.

Crude oil is clearly bullish, unfolding a five-wave higher degree impulse which we labeled as blue wave 5 of a bigger bullish cycle. We see recently completed leg 3) of five at the 75.26 area, from where a new intra-day drop has started to unfold which can be part of a three-wave contra trend reaction. We see this reaction as leg 4) with possible support at the Fibonacci ratio of 23.6/38.2, from where red wave 5) of five can take price back to the highs. However, we could change our bias if we see the price dropping aggressively through 69.10 level.

Crude oil, 4h

Crude oil, Daily