Elliott Wave Analysis: Further Downside Expected in Oil
Hello Traders,
Since forming the high on Oct 3 at $76.9, Oil (CL_F) has dropped more than 30% in just less than 2 months. The move lower is pretty fast and short term Elliott Wave view suggests the decline is unfolding as an impulse Elliott Wave structure. Down from $76.9, black wave ((1)) ended at $68.47, black wave ((2)) ended at $69.65, black wave ((3)) ended at $54.75, and black wave ((4)) ended at $57.98. Oil is currently in the final leg black wave ((5)).
From 57.98 peak, oil ended internal blue wave (1) at 52.76, above from there it ended blue wave (2) bounce at 55.90. Below from there it ended blue wave (3) at 50 as a 5 waves impulse structure where it ended red wave 1 at 54.15, red wave 2 bounce at 54.87, red wave 3 at 50.50 and red wave 4 bounce at 51.72 and finally red wave 5 of blue wave (3) at 50.
Above from there we are calling blue wave (4) bounce complete at 52.24 and ideally it should extend now lower. However, as long as it stays above blue wave (3) low a double correction higher in blue wave (4) still can't be ruled out. As long as it stays below 55.90 it should extend lower. We prefer more downside against 55.90 peak. We dont like the buying.
Since forming the high on Oct 3 at $76.9, Oil (CL_F) has dropped more than 30% in just less than 2 months. The move lower is pretty fast and short term Elliott Wave view suggests the decline is unfolding as an impulse Elliott Wave structure. Down from $76.9, black wave ((1)) ended at $68.47, black wave ((2)) ended at $69.65, black wave ((3)) ended at $54.75, and black wave ((4)) ended at $57.98. Oil is currently in the final leg black wave ((5)).
From 57.98 peak, oil ended internal blue wave (1) at 52.76, above from there it ended blue wave (2) bounce at 55.90. Below from there it ended blue wave (3) at 50 as a 5 waves impulse structure where it ended red wave 1 at 54.15, red wave 2 bounce at 54.87, red wave 3 at 50.50 and red wave 4 bounce at 51.72 and finally red wave 5 of blue wave (3) at 50.
Above from there we are calling blue wave (4) bounce complete at 52.24 and ideally it should extend now lower. However, as long as it stays above blue wave (3) low a double correction higher in blue wave (4) still can't be ruled out. As long as it stays below 55.90 it should extend lower. We prefer more downside against 55.90 peak. We dont like the buying.
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