Elliott Wave View: Oil May See Short Term Support Soon

Short Term Elliott Wave structure for Oil (CL) suggests the rally from March 24, 2021 low ended wave (1) at 66.75 a 5 waves diagonal Elliott Wave structure. Wave (2) pullback is currently in progress to correct cycle from March 24 low before the rally resumes. Internal of wave (2) is unfolding as a zigzag Elliott Wave structure.

Down from wave (1), wave ((i)) ended at 64.92 and bounce in wave ((ii)) ended at 65.98. Oil resumes lower again in wave ((iii)) towards 64.50 and bounce in wave ((iv)) ended at 65.24. Final leg lower wave ((v)) of A ended at 63.90. Bounce in wave B ended at 66.63 as an expanded Flat structure. Up from wave A, wave ((a)) ended at 65.75 and pullback in wave ((b)) ended at 63.68. Final leg higher wave ((c)) of B ended at 66.63.

Wave C of (2) remains in progress and Oil has reached the 100% – 161.8% Fibonacci extension area at 61.62 – 63.53 where support can be seen for further upside or 3 waves reaction higher at least. As far as the decline doesn’t go below 161.8% Fibonacci extension at 61.62, expect Oil to turn higher in 3 waves at least.