The Elliott wave view in OIL suggests that it’s correcting the cycle from October 25, 2021 peak. Looking for more upside towards $76.77- $83.57 area to form a wave ((B)) connector. Then from there, the instrument is expected to fail lower in a bigger ((C)) leg lower to complete the correction. While shorter cycle suggests that a decline in wave (B) unfolded as a flat structure where the first leg ended in wave A at $69.39 low.
Up from there, OIL did another 3 swings bounce & ended wave B at $72.99 high. Down from there, it declined in 5 waves lower where lesser degree wave ((i)) ended at $69.89. Wave ((ii)) ended at $71.35 high, wave ((iii)) ended at $66.84, wave ((iv)) ended at $68.73 and wave ((v)) ended at $66.02 thus completed wave C of (B). Then from there, we believe that (C) leg higher has started in an impulse sequence where wave 1 ended at $69.78 high, wave 2 ended at $68.56 low. Near-term, as far as it remains above $66.02 low then expect OIL to extend higher for a few more push higher targetting $76.77- $83.57 area to complete (C) leg higher.
OIL 1 Hour Elliott Wave Chart
