By Orbex

The current USOIL structure suggests the development of a global upward impulse c of the cycle degree. This consists of primary sub-waves ①-②-③-④-⑤.

By the beginning of December, the market completed a downward price movement within the primary fourth correction. It looks like a zigzag pattern (A)-(B)-(C).

After the end of the wave ④, we saw a price reversal and growth in an impulse form. We can assume that the initial part of the primary fifth wave is under construction.

The end of the entire wave ⑤ is likely to reach the 93.76 area. At that level, it will be at 76.4% of primary impulse ③.

An alternative scenario shows the intermediate correction wave (4). This is part of the primary third wave which can take the form of a minor triple zigzag.

Perhaps the level of 85.50 ended the impulsive motion of the bullish intermediate wave (3).

In the short term, a correction is likely in the minor wave X near 59.55. At that level, wave (4) will be at 61.8% of impulse wave (3).

After reaching the specified price mark, the market could rise above the maximum of 85.50, which was marked by wave (3).

Article by Orbex

Orbex is a fully licensed broker that was established in 2011. Founded with a mission to serve its traders responsibly and provides traders with access to the world’s largest and most liquid financial markets. www.orbex.com