OIL is trading
slightly lower after recent reversal from the upper channel resistance line
shown on the 4-hourly chart. However, we cannot ignore a three wave decline
from July high which is clearly a contra-trend movement, called a zig-zag in
Elliott Wave theory. With that in mind, we will continue to look for higher
prices on crude oil as long as 102.15 support is in place. As such, we suspect
that current set-back is wave (ii) that may look for a support in 104-105 zone,
in one of the Fibonacci support levels. Reversal from there, in impulsive
fashion back to 108 will be nice indication for a bullish moves, but then
towards 110 level.
OIL 4h chart
On a daily chart
of oil we can see that price broke sharply higher few weeks back, which is
looking impulsive; its sharp move in the short period of time. Impulses are
five wave patterns and if we focus just on latest rally from 91.20 we can see
that move is not in five waves yet. As such, we think that latest pull-back
from above 109 was wave four so we are looking higher into wave 5.
Oil Daily
chart
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