The short term Elliott Wave view in Oil (CL) indicates that the cycle from the 4.12.2024 high is currently in progress as a 5 waves impulse Elliott Wave structure. This suggests that there are clearly defined waves that are driving the movement in the commodity market.
Breaking down the wave structure further, we can see that down from the 4.12.2024 high, wave (1) ended at 72.48 and a rally in wave (2) ended at 84.55. The market then turned lower in wave (3), with internal subdivisions leading to another impulse in lesser degree. This shows the complexity and intricacy of the Elliott Wave structure.
Examining the corrections within the waves, we observe that Oil underwent an expanded flat correction as wave ((iv)) finished at 78.60 high. This correction highlighted the market’s tendency to move in a non-linear fashion, with both upward and downward swings playing a crucial role in determining the overall wave structure.
Looking ahead, the analysis suggests that further downside is expected to complete wave ((iii)) of 3. As long as the pivot at 78.88 high remains intact, rallies are anticipated to fail in 3, 7, or 11 swings for further downside. This underlines the importance of closely monitoring key levels and swing patterns to accurately predict market movements.
Currently, the market is experiencing a 3 swing higher to potentially end wave ((ii)) pullback before resuming lower. This indicates a constant ebb and flow in the market, emphasizing the need for continuous analysis and adjustments to trading strategies based on the evolving wave structure.
The short term Elliott Wave view in Oil (CL) provides a comprehensive analysis of the current market movements, highlighting the intricacies of wave structures, subdivisions, corrections, and future expectations. Traders and investors are urged to carefully study these patterns and stay vigilant in order to make well-informed decisions in the ever-changing commodity market.