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We are providing technical analyzes for the financial markets and how they behave based on the Elliott Wave Principle. The Elliott Wave Principle gives you a method for identifying at what points a market is most likely to turn. And that, in turn, gives you guidance as to where you might enter... More
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  • OIL: Corrective Pause Appears Complete; 110 Back In View-Elliott Wave Analysis 0 comments
    Aug 20, 2013 9:44 AM | about stocks: OIL

    OIL is trading slightly lower after recent reversal from the upper channel resistance line shown on the 4-hourly chart. However, we cannot ignore a three wave decline from July high which is clearly a contra-trend movement, called a zig-zag in Elliott Wave theory. With that in mind, we will continue to look for higher prices on crude oil as long as 102.15 support is in place. As such, we suspect that current set-back is wave (ii) that may look for a support in 104-105 zone, in one of the Fibonacci support levels. Reversal from there, in impulsive fashion back to 108 will be nice indication for a bullish moves, but then towards 110 level.

    If you are interested in our analysis then you can try us absolutely FREE FOR 7 DAYS!

    Visit http://www.ew-forecast.com/service/ for more details

    OIL 4h chart

    (click to enlarge)

    On a daily chart of oil we can see that price broke sharply higher few weeks back, which is looking impulsive; its sharp move in the short period of time. Impulses are five wave patterns and if we focus just on latest rally from 91.20 we can see that move is not in five waves yet. As such, we think that latest pull-back from above 109 was wave four so we are looking higher into wave 5.

    Oil Daily chart

    (click to enlarge)

    If you are interested in our analysis then you can try us absolutely FREE FOR 7 DAYS!

    Visit http://www.ew-forecast.com/service/ for more details

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