Crude Oil Daily Elliott Wave Analysis: 3 Wave Upward Rally
Sebastian Seliga | Jan 12, 2014 04:48AM ET
The higher degree Elliott Wave labelling has identified three wave upward rally from the level of 77.27 to the level of 112.21. This structure had been labeled as wave A green of the overall bullish wave development and there is wave B green and wave C green missing. Those cycles must be made to complete the overall structure.
The top of the recent rally has been established at the level of 100.76 and labeled as wave B black. From this level, price has developed five impulsive waves to the downside, making the low at the level of 91.45. This low has been labeled as wave 1 bottom and now some corrective cycle is expected. The resistance for any upside corrective rally is between the levels of 95.54 - 96.44 and it should put a lid on the market and any higher prices should be rejected. From this level traders can expect a downside trend resumption in another five impulsive waves to the downside. The projected target level for the price is between the levels of 84 and 85.53, which correspond with demand zone. However, if this level is broken, then next support is at the level of 80.28. That level would be the bottom for wave C black and it might be as well the bottom for wave B green of the higher degree. Whatsoever, the estimated time window for the whole cycle to complete would be between 5th and 11th of Febuary 2014. If this cycle is finished on the projected levels, traders might see a five waves impulsive rally to the upside that will easy take out the previous swing high at the level of 112.21.
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