Elliott Wave Analysis: Crude Oil Price Bursts Higher In 5th Wave

Crude oil prices have quietly rallied while the Bitcoin moves steal the headlines. It appears as though a minor degree triangle pattern has ended as crude oil now presses recent highs. If our Elliott Wave count is correct, this move higher is a terminal wave that once it exhausts, could be retraced early in the new year.

Do you know why traders typically fail? We demystify this in our Traits of Successful traders research.

Elliott Wave Analysis: Crude Oil Price Bursts Higher in 5th Wave

It appears crude oil prices are thrusting higher out of a triangle pattern in a fifth wave of an impulse wave. Using wave 5 measuring techniques one wave relationship shows up near $60.60 per barrel. Look for this wave 5 to subdivide in motive fashion (either as an impulse or as a diagonal). We can also anticipate divergence appearing on an oscillator like Relative Strength Index, which is typical in a fifth wave.

We feel confident in the wave 4 triangle interpretation because in an impulse, wave 4 tends to alternate with wave 2 in the type of wave. Wave 2 was a zigzag wave and wave 4 is a triangle, which fits that guideline of alternation.

Bottom line, we are in a terminal or ending wave of the 4 months advance. Crude oil price may find a terminal point near $60.60 though it does not have to.

Learn more about the Elliott Wave patterns by receiving our beginner and advanced Elliott Wave guides.

Elliott Wave Analysis: Crude Oil Price Bursts Higher in 5th Wave

---Written by Jeremy Wagner, CEWA-M

Jeremy is a Certified Elliott Wave Analyst with a Master’s designation. These articles are designed to show Elliott Wave analysis in the live market environment for educational purposes.

Discuss this market with Jeremy in a special year-end webinar on December 27 “What 2 Watch 4 in 2018”.

Follow on twitter @JWagnerFXTrader .

Join Jeremy’s distribution list.

Recent Elliott Wave articles by Jeremy:

Santa Brings a Gold Price Rally for Christmas

EURUSD Elliott Wave Pattern Looks to Higher Levels

NZDUSD Elliott Wave Analysis: Fourth Wave Close to Terminating

RECENT NEWS

United States GDP Expanded In Fourth Quarter By 3.4% - 28 March 2024

US GDP rises 3.4%, Canada GDP rebounds; US dollar steady, while stock markets show little movement following the announc... Read more

Forex Today: Feds Waller: No Rush To Cut Rates, Prospect Of Hikes Remote - 28 March 2024

US Fed’s Waller Reiterates Ongoing Fed Message of Slow Path to Rate Cuts; USD/JPY Remains Below Record High Near ¥152... Read more

Forex Today: Japanese Yen Hits 34-Year Low - 27 March 2024

USD/JPY Hits Record High Near ¥152, Japanese Officials Try to Talk Up Yen; Cocoa Futures Surpass $10,000 to Hit All-Tim... Read more

Forex Today: Cocoa Futures Break $9,000 For Record High - 26 March 2024

Cocoa Futures Gain 8% in a Day; US Stocks, Gold Remain Bullish; Japanese Officials Try to Talk Up Yen; Bitcoin Rises Abo... Read more

United States Federal Reserve Holds Interest Rates, Remains Cautious - 21 March 2024

The Federal Reserve left interest rates unchanged for a fifth straight time at its meeting on March 20. The US dollar fe... Read more

Forex Today: Fed Says 3 Rate Cuts In 2024, Stocks, Gold Boom - 21 March 2024

Fed Gives Dovish Surprise by Forecasting 3 Cuts in 2024; Markets Await BoE, SNB; Gold, Stock Markets Reach Record Highs;... Read more