USOIL seems to be forming a global upward impulse c of the cycle degree, which consists of primary sub-waves ①-②-③-④-⑤.
At 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, there was a price reversal and growth in an impulse form. We can assume that the initial part of the primary fifth wave is currently under construction. And in the medium term, it will take the form of an intermediate impulse (1)-(2)-(3)-(4)-(5).
The end of the entire wave ⑤ could reach 93.76. At that level, it will be at 76.4% of primary impulse ③.
Alternatively, only the third primary wave is currently forming into an intermediate impulse (1)-(2)-(3)-(4)-(5), which could soon be fully complete.
Top 5 Companies Added to Our Stock Watch List this Quarter - Here are the Stock Symbols that stood out so far in the fourth quarter of 2021.
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.
Currently, the market is most likely in the last minor wave 5, part of the intermediate impulse (5). The end of wave 5 might be around the 86.05 level. And that is slightly above the previous peak, where the intermediate wave (3) ended.
At the level of 86.05, intermediate impulse wave (5) will be at the 50% Fibonacci extension of intermediate impulse (3).
After reaching that price level, we can expect a fall in the primary fourth wave.
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