Elliott Wave View: Crude Oil on the Verge of a Breakout

Since bottoming at $42.36 on December 24, 2018, Crude Oil (CL_F) has rallied more than 30%. The initial rally to $55.75 on February 4, 2019 took the form of an Impulse Elliott Wave structure. We label this 5 waves rally as wave ((A)) of a zigzag Elliott Wave structure in higher degree. Then the pullback to $51.27 ended wave ((B)) as the chart below shows. From there, Oil has broken above wave ((A)), suggesting that the next leg higher in wave ((C)) has started.

Internal of wave ((C)) is unfolding as a 5 waves impulse where wave (1) ended at $57.61 and wave (2) ended at $55.02. As is typical of an impulse, we can see the fractal nature with wave (1) further subdivides into 5 waves impulse in lesser degree. Wave (2) unfolded as an Expanded Flat Elliott Wave structure where wave A ended at $56.64, wave B ended at $57.81, and wave C ended at 55.02. Oil is now within wave (3) of ((C)) and should continue higher while dips stay above $55.02, but more importantly above $51.27. This view will gain validity if Oil starts to break above February 22 peak at $57.81. We don’t like selling Oil