Crude Oil Intraday Rally Review

Crude oil has soared a bit further than I would like, so I had to go over the wave count to look for wave 3 to be extended. There is a  spike that I have to ignore, down at the wave 2 position, but otherwise we are looking at a diagonal run that has terminated this morning. We could get a deep correction, say down to the $43.60 price level, but it could make just a small correction, and carry on with the next leg. 

Another leg up would be ideal, but we could get fooled with this being just another 4th wave rally. Crude oil in a daily chart is a very ugly wave pattern, so we could get surprises that can’t be factored in. If a new low were to happen then the “B” wave in Minor degree would be trashed.  Any diagonal belongs to the 5 wave family, even though it can contain many zigzags, sequenced together.  

At this time oil is declining, but it is still rather weak, suggesting a correction is in effect. Hopefully we will know by the beginning of next month, if this bullish phase will hold.