OIL (CL #F) Short-term Elliott Wave view suggests that the rally from 55.82 December 07 low is unfolding as an impulse Elliott Wave structure with extension in 3rd swing higher, where each leg has internal oscillations of 5 waves thus favoring it to be an impulse. These 5 waves move higher should end the Intermediate wave (A) higher in an Impulse sequence. Afterwards, the instrument should do a pullback in intermediate wave (B) for the correction of 12/07 cycle in 3, 7 or 11 swings before another extension higher in intermediate wave (C) leg higher.
Also, it’s important to note that the below Chart is showing a bullish sequence tag which represents the bullish sequence in the instrument looking for more upside extension. Up from 55.82 low Minor wave 1 ended at 58.53, Minor wave 2 pullback ended at 56.07, Minor wave 3 ended in 5 waves at 64.74 and Minor wave 4 ended at 63.06 low. Above from there, Minor wave 5 remains in progress and expected to see more short-term strength towards 65.86-67.55 100%-161.8% Fibonacci extension area of Minor 1-2 to end the 5 waves impulsive sequence from 55.82 in intermediate wave (A) higher and instrument to start the Intermediate wave (B) pullback. We don’t like selling the instrument and prefer buying Intermediate wave (B) pullback in 3, 7 or 11 swings against 55.82 pivot for further upside extension.
OIL (CL #F) 4 Hour Elliott Wave Chart
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