Wave count on Crude Oil

Starting our analysis on the 1D timeframe, we can see that the price is in a big bullish move after a big bearish move. The bearish move looks to us as a simple zig-zag three wave corrective pattern and can be also identified as the first motive wave in a five wave sequence on a larger degree. The current bullish move can then be expected to act like a five wave move against the trend of the previous bearish move. Wave one, the first correction and wave three were already completed. Now we wait for a correction labeled as wave 4, wich is probably going to be a bit more complex as the first correction was not. After wave five we expect a larger bearish move, that will act as wave three in the structure of one larger degree.

On the 4 hour chart, we can see, that the price is trying to get above the previous support/resistance zone. We are waiting for he confirmation, but do believe, that the price will break through and bounce off in the bullish direction.


We wish you good luck with your trading!