E Crude Oil Is In A Corrective Phase

Today we will talk about Crude oil, its price action from a technical point of view, and wave structure from the Elliott Wave perspective.

Crude oil is in an impulsive rally from April 2020 Lows and in Elliott Wave theory, an impulse must consist of five waves, which looks to be unfinished. So, the current slow down should be as part of a corrective movement within wave (4) before the uptrend for wave (5) resumes towards the 70 area.

oilDaily

Well, wave (4) can be sometimes very complex, because there are several patterns that can occur in 4th waves. It can be zig-zag, flat, or maybe even triangle, so it's important to be patient at this stage. First support at 57 level has been actually already achieved as we see equal retracement as it was in wave 2), but be aware of deeper and more complex one down to 38,2% Fibonacci retracement that can retest even 55-53 support zone. Anyway, we remain bullish as long as the price is trading above wave 1) swing high and 44 region.

Oilbasic

All the best and have a nice weekend!

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

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Jeffrey Johnson 2 weeks ago Member's comment

I always find it interesting when I see stocks going up and down, with many terms describing the different highs and lows. Though I am more active in business as a gutter cleaner and prefer to invest in real actual assets such as my business and real estate as an insider, I see how people choose to invest in derivatives like oil stocks rather than investing in the oil mines themselves. How have you fared with your investments with oil mines as compared to stocks? Have you invested in oil directly as an investor or business owner or solely on trading screen? Thanks Horvat