On energy we see price recovering in an impulsive manner, ideally unfolding a bigger three-wave reversal.

With the current rally from the 42.46 level comes an indication that a low had been put in place for a former higher degree wave A and that a bigger black wave B correction can be in the making. In such case, a five-wave rally for sub-wave A of B can now be in development which can later look for resistance and a turn into a minor sub-wave B correction near the 55.30 area (area of Fibonacci projection zone of 261.8).

That said, at the moment we are tracking minor wave 4) of A, which can look for support around the Fibonacci projection zone of 38.2 and 50.0.

Crude oil, 4h

(Click on image to enlarge)