OIL ($CL_F) Buying The Dips At The Blue Box Zone

Hello fellow traders.  OIL  Futures ( $CL_F ) is another instrument that has given us nice trading opportunity lately . As our members know the commodity is showing bullish sequence. We recommended members to avoid selling the commodity and keep on buying the dips in 3,7,11 sequences when get chance. In this technical blog we’re going to take a quick look at the charts of OIL published in members area of the website and explain the Elliott Wave structure and trading strategy.

OIL Elliott Wave 4  Hour  Chart 1.22.2021

OIL remains bullish against the 47.31 low in first degree. Cycle from that low ended as 5 waves and now we are getting correction. At this stage pull back looks incomplete. The price structure suggests another leg down is possible toward 51.7-50.36 ( buyers zone) As the main trend is bullish we expect to see at least 3 waves bounce from the marked zone. Once the price reaches 50 fibs against the ((b)) black high , we should make long positions risk free. As our members know Blue Boxes are no enemy areas , giving us 85% chance to get a reaction.

You can learn more about Elliott Wave  Patterns at our Free Elliott Wave Educational Web Page.

OIL Elliott Wave 1  Hour  Chart 1.25.2021

Eventually OIL made another leg down toward blue box area ( 51.7-50.36 area ) and found buyers as we expected. The commodity has given us nice bounce from the buying zone. At this moment the price has already reached 50 fibs against the ((b)) black high. Members who bought OIL  at the blue box area now enjoying profits in a risk free trades. Now, we expect to see further separation up from the 51.44 low . We would need to see break of 01/13 peak  to confirm next leg up is in progress.

OIL Elliott Wave 1  Hour  Chart 1.25.2021

As we can see on the chart below 51.44 low held nicely during short term pull backs.  OIL made further separation higher and eventually broke above 01/13 peak. Right side remains the long side. We don’t recommend selling it in any proposed pullback.

Note: Some labels have been removed in order to protect clients privileges.  Keep in mind market is dynamic and presented view could have changed in the mean time. You can check most recent charts in the membership area of the site. Best instruments to trade are those having incomplete bullish or bearish swings sequences.We put them in Sequence Report and best among them are shown in the Live Trading Room.