USOIL Ending Diagonal to Complete Intermediate Impulse

May 11, 2022

By Orbex

USOIL shows the development of the final part of the global impulse wave of the cycle degree. The final primary wave ⑤ takes the form of an intermediate impulse.

In early April, an intermediate correction wave (4) ended in the form of a minor zigzag. Prices then began to rise in the intermediate wave (5). We see that sub-waves 1 and 2 have a corrective structure. Thus, the entire wave (5) can take the form of an ending diagonal 1-2-3-4-5, as shown in the chart.

The end of this construction is possible near 124.76. At that level, wave (5) will be at the 50% Fibonacci extension of impulse (3). If this level is broken, prices could rise even higher to 132.24. At that level, wave (5) will be at 61.8% of impulse (3).

Let’s consider an alternative scenario in which the construction of the intermediate correction (4) has not completed yet. Perhaps it will have a horizontal triple three W-X-Y-X-Z pattern.

The minor sub-waves W-X-Y-X look completed. A downward movement is now likely in the actionary sub-wave Z. This could take the form of a minute simple zigzag ⓐ-ⓑ-ⓒ.

Oil prices could fall to 90.39. At that level, intermediate correction (4) will be at 61.8% of impulse (3).

After the end of the sideways movement, the market is likely to grow above the maximum of 129.56.

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