Crude Oil: Correction Appears Complete; Weakness Could Extend To

Oil recovered nicely in the last few days from 91.80 back to 94.75 – a move which was expected after it completed a five wave pattern down.

We were tracking a corrective bounce in the last few days which has unfolded very nicely and stopped at 94.75, almost on a tick at wave four resistance of one lesser degree.

Notice that market reversed sharply lower a few sessions back after it completed the double zig-zag. The fall is clearly in impulsive fashion which has also extended through the lower side of a corrective channel.

This is a clear bearish signal for further weakness on oil prices, this time towards and through 91.80 support followed by $90-psycho level. The new critical invalidation level is now at 94.75.

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Gregor Horvat

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!

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