Crude oil prices have quietly rallied while the Bitcoin moves steal the headlines. It appears as though a minor degree triangle pattern has ended as crude oil now presses recent highs. If our Elliott Wave count is correct, this move higher is a terminal wave that once it exhausts, could be retraced early in the new year.
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It appears crude oil prices are thrusting higher out of a triangle pattern in a fifth wave of an impulse wave. Using wave 5 measuring techniques one wave relationship shows up near $ 60.60 per barrel. Look for this wave 5 to subdivide in motive fashion (either as an impulse or as a diagonal). We can also anticipate divergence appearing on an oscillator like Relative Strength Index, which is typical in a fifth wave.
We feel confident in the wave 4 triangle interpretation because in an impulse, wave 4 tends to alternate with wave 2 in the type of wave. Wave 2 was a zigzag wave and wave 4 is a triangle, which fits that guideline of alternation.
Bottom line, we are in a terminal or ending wave of the 4 months advance. Crude oil price may find a terminal point near $ 60.60 though it does not have to.
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—Written by Jeremy Wagner, CEWA-M
Jeremy is a Certified Elliott Wave Analyst with a Master’s designation. These articles are designed to show Elliott Wave analysis in the live market environment for educational purposes.
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