$OIL Expanded flat correction

Expanded Elliottwave Flat is a 3 wave corrective pattern which could often be seen in the market. Inner subdivisions are 3, 3, 5 and labelled as A, B, C. Waves A and B have forms of corrective structures like zigzag, flat, double three or triple three. Whereas , wave C is always a 5 waves structure, either motive impulse or ending diagonal pattern. It’s important to notice that in Expanded Flat Pattern wave B completes below the start point of wave A, and wave C ends above the ending point of wave A which makes it Expanded. Wave C of expanded completes usually close to 1.236 Fibonacci extension of A related to B, but sometimes it could go up to 1.618 Fibonacci extension and very rarely it could extend up to 2.618 Fibonacci extension.

At the graphic below, we can see what Expanded Elliottwave Flat structure looks like.

Expanded Flat


$OIL 1 hour 8/11 London updated chart 

The CL #F Light crude oil futures chart below shows preferred Elliott wave forecast from August 11.2016. It suggests the cycle from the 39.19 (8/3) low completed at 43.39 labelled red wave W. After that price pulled back in 3 waves to 42.40 i.e. wave ((a)) and then went on to make a new high above 43.39 high but failed to follow through and started dropping again eventually dropping below wave 42.50 low giving it the look of an expanded FLAT structure. In this case wave ((c)) extended to just short of 2.618 Fibonacci extension of ((a))-((b)) at 41.06 and also reached the 50 -61.8 Fibonacci retracement area of the red wave W. As per the forecast,  we already have 5 swing within wave ((c)), there is possibility of another marginal push lower to happen before the next leg higher begins.

Oil 11 August 1 Hour London


$OIL 1 hour 8/12 Asia updated chart

We got proposed push lower and the pair found buyers shortly after. Wave X red pull back ended as Expanded Flat structure at 41.10 low and pushing higher as expected.



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