Oil 1 Hour Elliott Wave Analysis: Suggesting More Downside

Hello Traders,

In this Elliott Wave Analysis, we will have a look at Oil in the 1 hour chart.

The commodity ended its cycle from 8/1/2016 low (39.19) at the peak of 07/03 in red wave III and currently, it is correcting that cycle in 3-7 or 11 swings in red wave IV lower before the rally can resume.

Near-term it ended blue wave (W) at 07/12 low (69.23). The internals of blue wave (W) unfolded as an Elliott Wave flat structure where it ended red wave A at the low of 07/06 (72.15), red wave B pullback at 07/10 (74.71) and red wave C of blue wave (W) completed at 07/12 low (69.23). Above from there, blue wave (X) correction ended at 07/13 peak (71.66). Below from there it is at the 61.80-76.40 Retracement area from 07/03 peak which can end soon the cycle from 07/13 peak (71.66) in red wave A and as long as pullback in red wave B stays below 71.66 peak, we expect Oil to resume lower towards the equal legs of 65.62-64.19 from 07/03 peak before a reaction higher can be seen. We don’t like selling Oil.