Crude Oil Is Looking Impulsive On the Intra-day Basis; Could See $93.00

Oil is forming an impulsive price action from 87.87 swing low. The reason is recent strong reaction towards 92.00 figure yesterday which has been very strong and sharp in short-period of time. That’s a personality of a third wave, so we think that market is forming a five wave pattern. With that in mind, be aware of more upside, this time towards 93.00 mark. Current sub-wave four may look for support around 91.00 level. Market remains in bullish shape as long as 89.92 support is not breached. 

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OIL May Have Found A Temporary Top Around $96.60

Oil fell sharply lower last week, clearly in five waves from 97.60 which means that trend has now turned bearish. We also know that after every five waves correction follows, so before we may look straight down again we need a three wave  bounce back to 94-95 area. This could be then a black wave 2 that will look for a resistance somewhere around between 38-61.8% retracement area. Critical/invalidation level stands at 97.63 because we know that wave two must not retrace more than 100% of wave one.

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#OIL Is Forming Continuation Pattern Within Larger Trend (Elliott Wave Analysis)

Oil firstly extended lower at the end of the past week in wave C as highlighted in our past updates. Well, we anticipated a five wave decline from 98.00 but because of an overlap with 96.57 market actually completed a three waves (a)-(b)-(c) down to 95.11. This is a structure of a corrective movement so we think that whole price action from Jan 30 is actually an incomplete triangle in wave 4), especially if we consider that market did not move through previous wave A swing level. If we are correct, then market will stay sideways for the next 24-48 hours before price breaks higher, through 98 mark that will open door for $100, psychological level.

What is a triangle?

A Triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.