Elliott Wave Analysis: Crude Oil Trading At Support

Crude oil made a strong break higher the previous week, out of a fourth wave triangle that formed a base around $50. As we can see the following wave five has later fully unfolded and found a top near the 52.82 level. A suggestion for a top in place can be recent intra-day drop, that can be part of a three-wave reversal. We see waves a and b of this three-wave reversal completed and now final leg c can be in progress, with support coming in at 50.25 level. A five-wave rally and a break above the 51.78 level would indicate more gains to follow.

Crude oil, 4H

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Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com