Oil Analysis: Extending To The Downside

Oil short-term Elliott wave analysis suggests that the bounce to $70.44 high ended in an intermediate wave (2). The internals of that bounce took place as Elliott wave double correction where Minor wave W ended in 3 swings at $69.92. From there, the pullback to $68.26 completed the Minor wave Xin 3 swings. Then a bounce higher to $70.44 high ended Minor wave Y in another 3 swings & also completed Intermediate wave (2).

Down from there, the decline is taking place as Elliott wave impulse within intermediate wave (3) lower with the sub-division of 5 waves structure in Minor wave 1, 3 & 5. The initial decline from $70.44 high to $66.92 low ended Minor wave 1 of (3). The lesser degree cycles within that decline also unfolded in 5 waves structure & ended Minute wave ((i)) at $69.91. Minute wave ((ii)) ended at $70.22, Minute wave ((iii)) ended at $67.31 low, Minute wave ((iv)) bounce ended at $68.15 and Minute wave ((v)) of 1 ended at $66.92 low. Above from there, the bounce to $69.92 high ended Minor wave 2.

The internals of Minor wave 2 unfolded in 3 swings as Elliott wave zigzag correction where Minute wave ((a)) ended in 5 waves at $69.36. Minute wave ((b)) ended at $67.87 low and the bounce to $69.92 high ended Minute wave ((c)) of 2. Down from there, Minor wave 3 remain in progress in another 5 waves and as far as bounces fail below $69.92 high and more importantly the pivot from $70.44 high stays intact instrument is expected to see more downside. We don’t like buying it as the right side tag is lower.

OIL 1 Hour Elliott Wave Chart