Crude oil (NYMEX:CLU14) accelerated to the bearish side recently that has been expected after recent break out of an upward corrective channel that confirmed a completed three wave rise. As such, current bearish structure can be impulsive heading back to 91.00 area from start of the year. We are looking at wave 3 now in progress that has a typical target of 161.8% Fibonacci extension that comes in exactly at that 91.00 figure. Market will remain bearish now as long as 103.80 level holds.
Oil Daily Elliott Wave Analysis
Crude oil found some support recently. Market made five waves down from 103.30 and latest bounce back above 98.00 suggests that new correction is in play. We are looking for a three wave rally now back to 99-100 area that can be wave (ii). So once those levels are reached we will be looking for a new strong leg down.
Oil 4-hour Elliott Wave Analysis