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CL_F Oil Elliott Wave View: Pullback In Progress

|Includes: OIL, The United States Oil ETF, LP (USO)

Summary

While bounces in Oil stay below 48.76, it has scope to extend lower towards 43.92 - 44.85 area where buyers can appear for 3 waves bounce minimum

Oil Short Term Elliott Wave suggests that the decline from 8/1 peak is unfolding as a double three Elliott Wave Structure where Minute wave ((W)) ended at 46.46 and Minute wave ((X)) ended at 48.76. Oil has since made a new low below Minute wave ((W)) at 46.46 suggesting the next leg lower has started. Wave ((Y)) is in progress and also subdivided as a double three where Minutte wave (W) ended at 46.15 and Minutte wave (X) is proposed complete at 46.96.

Near term, while bounces stay below Minute wave ((X)) at 48.76, Oil has scope to extend lower towards 43.92 – 44.85. This is an inflection area where Minute wave ((W)) = Minute wave ((Y)) and buyers can appear in this area for at least a 3 waves bounce. We don’t like selling Oil and expect buyers to appear at 43.92 – 44.85 area (if reached) for at least a 3 waves bounce, provided that pivot at 6/21 low (42.07) remains intact.

Oil 1 Hour Elliott Wave Chart