In our previous review Crude Oil Technical Analysis dd. August 1, 2016 we supposed that the 1-Hour chart was building a new bullish A wave.

1-Hour Chart

This wave included a 3-wave abc structure of a 15-minute time frame. You may remember that we expected continuation in a 5th bullish wave of m15 (drawn with orange lines). However, the market decided it needed to extend the bearish trend on 1-Hour chart via the Baskerville’s dog.

crude-oil-1-hour-chart-2016-08-02

5-Minute Chart

Today we have another bullish correction that can be seen on smaller time frames. A 3-wave structure marked with blue lines has a wave scale of say m10 or m12 as its waves on m5 look rather stretched. It has a scale of more than m5 but less than m15. Now the bulls are busy forming the C momentum wave.

crude-oil-m5-chart-2016-08-02

 How could we know whether this bullish correction is finished or not?

Let us have a look at the blue C wave on 1-Minute chart.

1-Minute Chart

M1 allows us to see the blue dashed line below the current C wave. This is a slope channel that protects the C wave. Until it remains intact, the C wave up is running on. Once the price touches this slope channel, it will mean either a 4th correction wave down or a new A bearish wave.

crude-oil-m1-chart-2016-08-02

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