Tuesday, March 4, 2014

Is crude waving the white flag?

By Gregor Horvat

OIL Elliott Wave Analysis: Crude OIL

Crude oil reversed sharply to the downside at the end of 2013, clearly in impulsive fashion from $112 so we think it represents first leg within wave (C). As such, crude oil should continue lower this year, but after a completed sub-wave 2) that is still unfolding. A break of the trendline from $77 should be a catalyst for acceleration down to the $ 65 to $70 area.

OIL Weekly Elliott Wave Analysis

Crude Oil Daily

Crude oil has reversed nicely to the upside in the last couple of weeks from the $91 low, clearly in an impulsive fashion so we suspect that prices are in a corrective reversal of wave 2). As such, current rally is temporary, but needs to be made in three legs, ideally with a three wave retracement for 61.8% compared to previous five waves down. We see prices now at the end of wave A with so be aware of a wave B pullback in the second part of February.

OIL Daily Elliott Wave Analysis

Crude Oil Four-hour

As expected, crude oil broke to a new high above $101 after recent slow and sideways price action, which we think was wave (iv) as highlighted last week. As such, current move higher is most likely wave (v), final leg within wave A that may be looking for a top in this week around $105.00. With that said, traders should now be aware of approaching corrective reversal.

OIL four-hour Elliott Wave Analysis

Crude Oil One-hour

Crude Oil reached a new high, so we have to be aware of a possible reversal in price as rally from $101 can be counted in five waves, so wave (v) can be near completion. Move beneath 103.68 will confirm a reversal.

OIL one-hour Elliott Wave Analysis

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