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:
Sign Up for Our Stock Market Newsletter – Get updated on News, Charts & Rankings of Public Companies when you join our Stocks Newsletter
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.
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
- COT Bonds Charts: Speculator Weekly Changes led by 5-Year & 10-Year Bonds Apr 28, 2024
- COT Stock Market Charts: Speculator Bets led by VIX & Russell-Mini Apr 28, 2024
- COT Soft Commodities Charts: Speculator Bets led by Corn & Soybean Meal Apr 28, 2024
- Today, investors’ focus is on the PCE Price Index inflation report Apr 26, 2024
- Gold price recovers amid uncertain US economic outlook Apr 26, 2024
- This “Bullish Buzz” Reaches Highest Level in 53 Years Apr 26, 2024
- FastSpring and EBANX Forge Partnership to Expand Pix Payments for Digital Products in Brazil Apr 25, 2024
- Target Thursdays: NAS100, Robusta Coffee, USDCHF Apr 25, 2024
- QCOM wants to create competition in the AI chip market. Hong Kong index hits five-month high Apr 25, 2024
- Japanese yen hits all-time low as BoJ meeting commences Apr 25, 2024