Crude Oil Review- Flat Momentum and Critical Resistance
Overall View: Long-term bearish bias so long as the market trades below 81.95 resistance
4 Hour Chart Flows: Mixed Price Points: 81.95 Looking for: Top of Long wave B
Momentum: There is still a very flat momentum read to crude oil trade that has been in place since the 6th Nov. The 72.50 area continues to be a main price point, after sellers were held at bay recently around 69.50. The 80.50 area is the topside number to breach.
TheLFB Charting: Crude Oil Elliott Wave view
Elliott Wave: Oil hit the 79.00 critical resistance zone over the past few sessions, and our wave count was re-worked. We have an expanding diagonal trend line shown in a Short, blue wave A. Wave A found the lows at 68.50, where market reversed into a Long, corrective wave B that is searching for a top.
Wave B is a corrective pattern, where a zig-zag structure, with red A)-B)-C) labels, is shown. The current prices of the zig-zag pattern are trading close to the 76.4% Fibonacci retracement zone (78.70), where a top may get hit for a bounce into a Short wave C.
The bearish wave count remains valid so long as the market trades below the 81.95 resistance region.
Above is one of three charts posted on this commodity to members each day, that make up thirty charts in total that cover six major currency pairs, equity futures, oil, gold, and the dollar index.
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Disclosure: no positions