Home Triangle Consolidation on Crude OIL Points Towards $80 per Barrel – Elliott Wave Analysis
Forex News Today: Daily Trading News

Triangle Consolidation on Crude OIL Points Towards $80 per Barrel – Elliott Wave Analysis

Hi traders,

Crude oil has recently fully unfolded a triangle correction in blue wave 4, which found support near the 67.00 area and from there broke higher. We can see a decisive break above the upper triangle line, which confirms a completed correction and more upside into wave 5, which can target region near the 76.81/81.00.

Crude oil, Daily

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. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.

A triangle correction:

Now switching to the 4h chart, where we have a better look at the bullish development which started at the 66.64 level. We specifically see price making a five-wave rise within wave 3), which can look for resistance in the near future, so be aware of a red wave 4) pullback, ideally into 73.00 area, from where more gains may follow.

Crude oil, 4h

Gregor Horvat

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!