Crude Oil Technical Analysis Today
We continue to publish our regular reviews on crude oil technical analysis. The previous Review was published on August 2, 2016.
You may remember that the 1st wave (or A wave) of the current downtrend started in early June 2016. Since then Brent built a 3-wave structure on 8-Hour chart that is plotted with chocolate lines. A recent bullish correction that began on August 2, 2016 can already be noticed on 8-Hour chart. However, the current high on AO did not yet overcome the AO high of the previous B wave correction of the ABC downtrend. Therefore, the recent up move is a correction subwave of the chocolate C wave only. If the price continues to grow and AO will make a new high, this correction may firstly change its status from a subwave type to a 4th wave of 8-Hour chart. And finally if the bullish move will be supported by the older time frame that is 32-Hour for 8-Hour and this can be seen when AOx4 will cross the zero line (see: Awesome Oscillator: Top 5 Trading Strategies), then this wave can be considered as a new 1st or A wave of a new bullish trend.
4-Hour chart allows us to scrutinize the bearish C wave of 8-Hour chart. We see a 3-wave structure of 4-hour waves plotted with aqua lines. And now we are constructing a 4th correction wave up of a 4-Hour scale.
The inner 3-wave structure inside the current 4th 4-Hour correction wave belongs to 20-Minute time frame as its waves are too extended to fit in 15-Minute. And now the key point is either (1) we have already finished a small correction down as a subwave within the bullish 20-Minute C wave or (2) will continue a 4th correction wave down on 20-Minute or (3) will extend the move down in a new bearish A.