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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