Rally in Oil (CL) from Nov 2 low is unfolding as 5 waves impulsive Elliott Wave structure. In the 60 minutes chart below, we can see wave 3 of this impulse ended at 47.74. Wave 4 pullback then ended at 45.69. Internal subdivision of wave 4 unfolded as a zigzag where wave ((a)) ended at 46.34, wave ((b)) ended at 47.44, and wave ((c)) ended at 45.69.
Wave 5 is now in progress and should subdivide in another 5 waves in lesser degree. Up from wave 4 low at 45.69, wave (i) ended at 47.07, and pullback in wave (ii) ended at 46.54. Oil then resumes higher again in wave (iii) towards 47.73, and dips in wave (iv) ended at 47.28. Final leg higher in wave (v) ended at 47.91 and this should complete wave ((i)) in higher degree. Oil then pullback in wave ((ii)) which already ended at 47.17. Near term, while pullback stays above 47.17, and more importantly above 44.96, expect Oil to extend higher. As far as pivot at 44.96 low remains intact, expect buyers to appear in 3, 7, or 11 swing for further upside. Potential target higher is 100% – 123.6% Fibonacci extension of ((i))-((ii)) which comes at 49.4 – 49.9.