Cycle from 12.10.2022 low in Oil is in progress as an impulse Elliott Wave structure. Up from 12.10.2022 low, wave 1 ended at 82.64 on 1.23.2023 high and wave 2 pullback ended at 72.39 as the 1 hour chart below shows. Internal subdivision of wave 2 unfolded as a zigzag Elliott Wave structure. Down from wave 1, wave ((a)) ended at 76.55, rally in wave ((b)) ended at 79.73, and wave ((c)) lower ended at 72.39 which completed wave 2 in higher degree. Oil has turned higher in wave 3 with internal subdivision as an impulse. It still needs to break above wave 1 at 82.64 to confirm this view.
Up from wave 2, wave ((i)) ended at 78.84 and pullback in wave ((ii)) ended at 76.52. Oil then resumes higher again in wave ((iii)). Up from wave ((ii)), wave (i) ended at 80.62. Expect wave (ii) pullback to find support against 76.52 and more importantly against 72.39 for further upside. Near term, as far as pivot at 72.39 low stays intact, expect dips to find support in 3, 7, or 11 swing for further upside. Potential target higher is 100% – 161.8% Fibonacci extension of wave ((i)). This area comes at 83.08 – 87.13.
