Elliot Wave: Oil Still Below $73

Daily Forex Technicals | Written by TheLFB-Forex.com

Weekly chart trend: Long. Main price points: $33, and 73. Looking for: Wave 2).
Oil bounced from the trend-line resistance area, where $73 per barrel appears to be the top of wave 1) followed by the current, corrective wave 2). We are looking for the sub-waves of a new up-trend, as red wave B is completed at $33 per barrel. This support area needs to holds in the coming months and years, while wave C develops. Stochastic indicators are also in a pull-back mode, which may suggest a turning point in the coming weeks.



















The 38.2% Fibonacci level may already be the bottom of wave 2).
Daily chart trend: mixed. Main price points: 58.30, and 73.27. Looking for: Break through 73.27
Oil prices on a daily chart are still below the wave 1) top; $73.27 per barrel, which means that there are two possible scenarios. The first one is that wave 2) is already completed around 38.2% of wave 1), at $58.33 per barrel, which means that a break through wave 1) highs is expected.

If the break of 73.27 does not soon happen, then it may also be the case of a more complex wave 2), which means that a turning point into another leg down, below 58.30 is also one of the valid scenarios. Traders should pay attention to a bullish move if the 73.27 area fails or on a more complex wave 2) if the 58.30 support gets broken.