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Elliott Wave Count On Crude Oil Is Pointing Down Again

|Includes:iPath S&P Crude Oil Total Return Index ETN (OIL)

Crude oil reversed sharply to the upside at the end of November, after five waves down completed an extended wave 3 which is typically the strongest wave in a five wave cycle. As such, we assume that recent contra-trend reaction back to $100 per barrel was only a contra-trend movement; wave 4 that is part of an impulsive drop from 112.20. Current reversal down from 100.80 appears to be very strong so maybe new leg down has already started. We suspect that crude oil will revesing 91.80 in the first couple of weeks of 2014.
Crude Oil daily

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Stocks: OIL