Crude Oil Intraday Crash Review

This morning crude oil has finally decided to make a correction that is more obvious than the corrections we had on the bullish ride up.  This could have been a 4th wave rally as well, so if that is the case, then oil will crash to a new record low, below the $42 price level.

This crude oil decline would have to make a pretty clear corrections, if another leg up is going to happen.   I labelled an “A” wave as my top, and any “B” wave, would connect the A5 and C5 waves in a zigzag.   At $44.50 we would be coming up to a previous bullish correction, but any more than a 60% decline could be problematic.  Oil has to keep making patterns of higher lows, as that is what happens in a big bullish phase.

Longer term, we should see oil well above $60 again and even the $89 price level is not out of reach.

 

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