Crude Oil looks to go lower
For crude oil we will focus on Count #2 from a weekly chart because of recent sharp decline from 112, which looks like a more impulsive rather than corrective move. The next important factor is a direction of a trend and sentiment; we definitely want to stay with the price and don't want to ignore what is actually happening. We can see sharp move down from the last few weeks and now a slow sideways price action above 93 level that looks like a correction within red wave 3) that could hit 91, maybe even 88 level by the end of the year.
Oil daily Elliott wave analysis
On 4h Chart Crude oil made a bearish gap on Sunday but it has been filled in the last 24 hours around 94.60 from where price turned slightly bearish. As such, we are now observing a triangle in wave 4 becasue of a sideways price move. If we are correct then we still need wave (e) before downtrend will resume.
Oil 4h Elliott wave analysis
Elliott wave education: triangle pattern
A Triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.
• structure is 3-3-3-3-3 • each subwave of a triangle is ussaly a zig-zag • wave E must end in the price territory of wave A • one subwave of a triangle usually has a much more complex structure than others subwaves • appears in wave four in an impulse, wave B in an A-B-C, wave X or wave Y in a double threes, wave X or wave Z in a triple threes