Crude Oil on the Way Towards March 09 Gap – Elliott wave analysis

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Hello traders,

Crude oil is bullish since the end of April and is currently trading very strongly towards $35 per barrel. This can be now a temporary resistance, ideally for wave 5 of A), therefore traders should be aware of a potential wave B setback, before the trend resumes even higher. This pullback is anticipated even on the 1h time frame, where rise from 24.70 is also in five waves, which indicates a potential limited upside at near-term levels. But because we see price moving into resistance, it does not necessarily mean it will hold unless we see a reversal and decisive breakthrough the hourly channel support line. This will likely signal that retracement is underway. Once correction will unfold, we think that this can be an opportunity to join the trend towards March 09 levels, when a significant break down with a gap occurred, as shown on the daily chart. 

Crude oil, 4h an daily

Crude oil, 1h

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About Author

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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