By Orbex
US OIL prices continue to decline in what seems to be a wave Y of a double zigzag correction.
The current action suggests that the complex pattern belongs to wave ③ of a primary degree bullish impulse.
As part of an intermediate wave (2), we can expect the dip to complete the combination lower. Prices could move towards – and past – the 61.80% of waves (1)(2), near $64.77.
Should bears break the golden ratio, prices could head even lower down. They could reach the 100% extension of waves WX, near $62.50.
Free Reports:
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Sign Up for Our Stock Market Newsletter – Get updated on News, Charts & Rankings of Public Companies when you join our Stocks Newsletter
On a different note, when considering medium-term price action, we can see the current short-term structure to be a leading diagonal (of the 33333 variation).
The said alternative comes to the spotlight due to the somewhat corrective-looking structure from the lows of $0.
Should such a scenario prevail, the $77 top would have completed the bullish 3-wave leg. In this case, the downside potential would extend to lower territories.
This is due to the current bearish correction being the first leg of either a 3 or 5-wave pattern to fresh lows.
By Orbex
- AI Revolution and NVDA: Why Tough Going May Be Ahead Mar 28, 2024
- GBP Consolidates Amid Concerns Over Economic Growth and Wage Trends Mar 28, 2024
- The Australian and German indexes set all-time highs. The Reserve Bank of South Africa kept the rate at 8.25% Mar 28, 2024
- Target Thursdays: EURGBP, GBPUSD & Crude hit targets! Mar 28, 2024
- EURSEK: Hits fresh 2024 high at 200-day SMA Mar 27, 2024
- Australia has seen a decline in inflationary pressures. Japan may conduct currency intervention shortly Mar 27, 2024
- Australian Dollar Slides to Three-Week Low Mar 27, 2024
- Trade restrictions between the US and China are intensifying. Japan’s currency diplomats talk about possible intervention to support the yen Mar 26, 2024
- Japanese Yen Awaits Intervention Amid Weakness Mar 26, 2024
- NETH25 index chasing new record highs! Mar 26, 2024