Revised view suggests that Crude Oil rally from 1/10 low (50.71) is unfolding as a diagonal where wave 1 ended at 54.08 and wave 2 is proposed complete at 52.22. A break above 54.08 would add more conviction to the view that the next leg higher has started, until then a double correction in wave 2 and another low below 52.22 can’t be ruled out. Near term, expect more upside towards 53.96 – 54.28 area to complete wave (w) and end cycle from 1/31 low (52.22). Afterwards, expect wave (x) pullback in 3, 7, or 11 swing to correct cycle from 1/31 low before the rally resumes. We don’t like selling the proposed pullback.
Oil 1 Hour Chart
Elliott Wave Degree
