Crude oil can be in a wedge, an Elliott wave ending diagonal pattern unfolding in wave 5. At the moment sub-wave v of 5 can be underway, so be aware of possibly limited upside in days to follow, and a sharp, bearish reversal, below the 40.0 mark.
Possible resistance is at $44.00 level.
Crude oil, 4h
On the daily chart of Crude oil we see energy in a strong recovery, up from 7.08 lows, which can be part of a bigger, bullish reversal. We see a higher degree wave A)/1) which can be in final stages with its structure, and can look for resistance, and a reversal into a wave B)/2) correction at the $44.0 level.
The relative strength index below the chart also suggests resistance and a reversal in days ahead.
Crude oil, daily
An ending diagonal is a special type of pattern that occurs at times when the preceding move has gone too far too fast, as Elliott put it. A very small percentage of ending diagonals appear in the C wave position of A-B-C formations. In double or triple threes, they appear only as the final C wave. In all cases, they are found at the termination points of larger patterns, indicating exhaustion of the larger movement.
Ending diagonal in an uptrend:
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