After a five-wave recovery within a higher degree wave (A), up from April lows, we can see that energy started declining from the highs; we see a break below the lower Elliott wave channel line, which suggests a temporary top in place, and a minimum three-wave retracement into a higher degree wave (B). Support for (B) is at the 32.5/26.0 zone.
WOW, once this gap feels in oil get ready for the correction. most wave 2 are zigzags and with this huge move up i think it would be expected. Also, look at the volume significant drop in volume. In the near future there will be big risk off moves in all assets. watching bonds and YEN pairs
Crude Oil reversed from its highs of last week near $40.7, almost closing the gap. The chart rallied up to its 50% retracement level ($40.7) of the recent major decline and is now pointing downward. Possible next retracement levels are: 78.6% ($35.39), 61.8% ($31.14), and 50% level at $28.7. MACD is forming a top; RSI is pointing downward.
Oil rushed down and I closed my short. What was the purpose? Count five waves from the end of wave b (graph on the left) and close the short.
Wave 2 or b may continue. For example (the graph on the left) it can be a larger zigzag, in the wave of which the third wave ends.
Well, or even wave 2 or b can go double zigzag (why not?).
But when you trade corrections...
Oil (CL_F) has just ended cycle from 4.29.2020 low as a 5 waves impulse Elliott Wave structure. Up from 4.29.2020 low, wave 1 ended at 23.4 and pullback in wave 2 ended at 20.84. Oil resumes higher again in wave 3 towards 38.18, wave 4 dips ended at 35.88, and wave 5 ended at 40.48. The 5 waves move higher ended wave (A) in higher degree. The instrument is now...