Elliott Wave View: Rally in Oil (CL_F) Remains Corrective

The rally in Oil (CL_F) from October 3 low ($50.99) looks overlapping and corrective. This suggests the current rally is likely not a new bullish cycle. The structure of the rally is unfolding as a double three Elliott Wave structure. Up from October 3 low, wave ((w)) as shown on the chart below ended at $56.92. The pullback in wave ((x)) ended at 53.71 with the internal of a double zigzag. Oil then resumes higher again within wave ((y)). Internal of wave ((y)) is unfolding as a zigzag where wave (a) ended at $57.85 as a 5 waves impulse.

Wave (b) of ((y)) is in progress as a flat structure. As far as Oil remains above 53.68, it has scope to extend higher again in wave (c) of ((y)). Possible target for wave (c) of ((y)) higher is $59.57 – $63.19, which is the 100% Fibonacci extension from October 3 low. Once Oil reaches this area, cycle from October 3 low should end. It should then see sellers for more downside or a larger 3 waves pullback to correct cycle from October 3.