We continue to publish our regular reviews on crude oil technical analysis. The previous Review was published on August 2, 2016.

8-Hour Chart

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.

crude-oil-8-hour-chart-2016-08-05

4-Hour Chart

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.

crude-oil-4-hour-chart-2016-08-05

20-Minute Chart

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.

crude-oil-20-minute-chart-2016-08-05

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