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Crude oil is trading sideways since mid-of February in the 28.50-36.00 range that has a corrective nature so we assume big wave four is in progress. It can be a triangle, a five wave pattern that can send price to the 26 or 25 area after it’s completion. At the moment, however, price is still ticking higher in wave C which may find resistance around 35.00. But for now, invalidation level remains the same, at 35.96; as long as  it’s not breached we will expect a turn down into wave D.

Crude OIL, 4H

OIL 4

A Triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. Triangles are overlapping five wave affairs that subdivide into 3-3-3-3-3.

A Triangle Pattern Formation:

triangle 1