Crude oil has turned slightly to the upside in the past week as expected after a completed five wave fall at 91.00 area. We have been looking for a three wave retracement back to former wave iv) placed at 94.26 which is already the case so we need to be aware of a new bearish reversal in the next few trading days. However, there is room for rally to 96.20 area, but sooner or later we think that downtrend will resume. We will keep an eye on 91.44 level; a decline towards this zone will confirm a completed rally and new leg down.
OIL 4h Elliott Wave Analysis
Crude oil reached our projected zone around 95.00 area that we highlighted at the end of the past week. We have now five waves up from 91.43 that can be considered as wave c) of a contratrend structure. However, a decline from top must be impulsive and strong to call end of a rally. Would love to see move back to 92.40 that will then open door for new low.
OIL 1h Elliott Wave Analysis
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