Crude oil: Impulsive wave supports harmonic structure
In this technical update for crude oil, we will study the price actions using Elliott count over four-hour interval, attempting to define near-term targets for our previous bullish outlook, which depended on the classical and harmonic studies.
On April 19, we published our suggested bigger picture for crude oil and we said, prices should breach 57.75 regions due to the harmonic crab formation traced over weekly studies.
Oil has adopted favorable reaction to this scenario and is currently hitting the psychological level of $60.00 per barrel.
Having a look at the four-hour interval, we can see the probability of drawing an impulsive wave with potential technical objective at 65.20 regions where the 161.8% Fibonacci projection of the third wave exists.
This target is very close to 67.00 –previous defined Fibonacci target- for the wave from 107.50 to 42.40.
To summarize this, we remain bullish on crude oil, aiming to use any pullbacks to long it, targeting 65.00 and 76.00 respectively.