• 12 hours How A Pandemic Made Americans Better Workers
  • 16 hours The Trillion Dollar Space Race Crosses Another Milestone
  • 20 hours Gold Prices Fall As Stock Market Sentiment Turns Positive
  • 1 day Conspiracy Theories Set Tone For 5G Cold War
  • 2 days Working From Home Will Transform The Energy Industry
  • 2 days The Multi-Billion Dollar Race For A Vaccine
  • 2 days Can Domestic Tourism Bolster Emerging Economies?
  • 2 days Australia Considers $100 Million Investment To Kickstart Mining Industry
  • 2 days Has Re-Opening The Economy Been Successful?
  • 2 days Gold Miners Still Have Massive Upside Potential
  • 2 days The Risky World Of Oil Hedging
  • 2 days Africa Turns To Innovation Amid The Global Pandemic
  • 2 days COVID-19 Sparked A Bicycle Boom
  • 2 days Will Government COVID Intervention Cause Inflation?
  • 3 days The Bitcoin Miner That Is Paid To Do Nothing
  • 3 days Capital Gain vs. Capital Consumption
  • 3 days Tesla’s Latest Battery Innovation Ready For Use In China
  • 4 days China Targets Hong Kong As Cold War With US Heats Up
  • 5 days No Shirt, No Shoes, No Mask, No Service
  • 6 days Insurance Companies Are Turning People Away As COVID-19 Crisis Escalates
Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

Lara Iriarte

Lara Iriarte

I have been using the Elliott wave principle to analyse up to five markets a day since 2008. I began Elliott Wave Forex (originally ForexInfo.us)…

Contact Author

  1. Home
  2. Markets
  3. Other

US OIL Elliott Wave Technical Analysis

Last analysis looked for the arrival of a second wave correction. The correction was indicated when the channel on the hourly chart was breached. The correction is most likely incomplete. I am now expecting price to move higher to a short term target at 101.76 to 102.21 before a resumption of the downwards trend.

US Oil Daily Chart
Larger Image

The daily chart shows all of the start of cycle wave c downwards.

Minor wave 1 subdivides perfectly as an impulse. Minor wave 2 is now complete as an expanded flat correction which is a 66% correction of minor wave 1.

Within minor wave 2 minute wave b is 106% the length of minute wave a, and minute wave c is 0.59 short of 1.618 the length of minute wave a.

At 72.53 minor wave 3 would reach 1.618 the length of minor wave 1.

Minor wave 1 lasted 65 days and minor wave 2 lasted 67 days. If minor wave 3 is of about the same duration it may end in another 50 days or thereabouts.

The channel drawn about minor waves 1 and 2 is a base channel. Minor wave 3 downwards should clearly and strongly breach the lower edge of the channel. Along the way down upwards corrections should find resistance about the upper edge of the channel.

Within minor wave 3 minute wave ii may not move beyond the start of minute wave i. This wave count is invalidated with movement above 105.21.

US Oil Hourly Chart
Larger Image

The hourly chart shows all of minute wave ii so far. It is an incomplete corrective structure and I expect it to move higher.

Within minute wave ii subminuette wave a may have been a leading contracting diagonal. Subminuette wave b may have been a complete flat correction. At 101.76 subminuette wave c would reach equality in length with subminuette wave a. At 102.21 minute wave ii would reach up to the 0.618 Fibonacci ratio of minute wave i.

If the target is met in another three days then minute wave ii will be equal in duration to minute wave i.

The green channel is drawn using Elliott's technique for a correction about minute wave ii. So far the lower edge is providing support. It should continue to do so while minute wave ii continues higher. Subminuette wave c may overshoot the upper edge of the channel (sometimes C waves do this). When the channel is breached by subsequent downwards movement that would be the first indication that minute wave ii should be over and minute wave iii may have begun.

When minute wave ii upwards is complete then the next downwards wave would be a third wave within a third wave. This should show strong downwards momentum.

Minute wave ii may not move beyond the start of minute wave i. This wave count is invalidated with movement above 105.21.

 

Back to homepage

Leave a comment

Leave a comment