Hello traders, and welcome to another update about Crude OIL. Crude Oil has been trading quite bullish the last year, unfolding a five-wave price movement from July of 2017 lows. We know that once a five-wave price movement fully unfolds, that is when a new change in trend may happen. In our case, this may have already occur as we see price currently sharply dropping from 72.84 high, where fifth wave found a top. Current weakness was expected, as we were tracking an Elliott wave ending diagonal in the final wave 5, which is a powerful reversal pattern and tends to push price strongly into the opposite direction, once fully shown. We think price may now aim for 60.02 level, from where this ending diagonal started to unfold. Also as you can see, price is already breaking below the lower channel line connected from 2017 lows, which is also a sign of a locked in top and more weakness to follow.
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Thanks for your analysis. I've posted the same count as https://well.https://www.tradingview.com/i/lhExd4jb/
But in my opinion, the last wave was not an ED because wave 4 didn't overlap wave 1 at all. Wave 4 overlaps wave 1 is one of the main characteristic of an ED, besides the wave pattern should look more or less like a zigzag for every leg in an ED.
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@Alif12399, c of a flat can be either an impulse or a diagonal
But in my opinion, the last wave was not an ED because wave 4 didn't overlap wave 1 at all. Wave 4 overlaps wave 1 is one of the main characteristic of an ED, besides the wave pattern should look more or less like a zigzag for every leg in an ED.