Crude OIL: Elliott Wave Based Trade Idea Crude oil reversed sharply to the upside three weeks back so it seems that five waves down completed larger degree of wave 3) and that current rally is a part of a contra trend reaction. We are talking about wave 4) that could stop around 100 psychological level. But before downtrend may continue we need three legs up in current wave 4). Why three legs, because that is the minimum structure of a corrective price action. Keep in mind that corrections are three wave patterns. Well, on the daily chart below I see only one leg up, labeled as wave A focus remains for higher levels for wave C after wave B pullback. If we are correct then we have room for a bullish set-up. OIL Daily Elliott Wave Analysis
On the 4h chart we want to identify short-term supports where wave B could complete its pullback. We see nice t zone in 94.50-95.65 region, where former
swing highs may react as a support around 38-61.8% retracement area. As such, thatâ€™s an idea region for a reversal up in wave C, towards $100 per barrel. OIL 4h Elliott Wave Analysis
Trade idea could be as follows: Long Crude Oil at 95.60 with stops at 93.00 and target at 100.00.
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