Analysis of Short Term Elliott Wave View in Oil (CL)

The short term Elliott Wave view in Oil (CL) suggests that the cycle from the high of 4.12.2024 is currently in progress, following a 5 waves impulse Elliott Wave structure. The downward movement from the high saw wave (1) ending at 72.48, followed by the rally in wave (2) ending at 84.55. Subsequently, the commodity turned lower in wave (3) with an internal subdivision as another impulse in a lesser degree.

Delving deeper into the wave pattern analysis, we see that down from wave (2), wave (i) concluded at 83.07, followed by a rally in wave (ii) ending at 83.45. Oil then extended lower in wave (iii) towards 81.25, with wave (iv) reaching an end at 82.16. The final leg, wave (v), concluded at 80.81, marking the completion of wave ((i)) in a higher degree.

The subsequent wave, ((ii)), unfolded in an expanded flat structure, with wave (a) ending at 83.74, followed by wave (b) lower ending at 80.22. The rally in wave (c) concluded at 83.82, completing wave ((ii)). The market then turned lower in wave ((iii)), ending at a low of 76.40. The built expanded flat correction as wave ((iv)), finishing at a high of 78.60 before resuming its downward trend.

With CL breaking below wave ((iii)) to end wave ((v)) of 1 at 74.59, and also completing wave 1 of (3), the market bounced in a zig-zag correction, ending wave 2 at 78.88 before initiating wave 3 of (3) to the downside. Following 5 swings lower, wave ((i)) of 3 concluded at a low of 71.67 with an expectation of 3 swings higher to end the wave ((ii)) pullback before further downside.

Therefore, the anticipation is for further downside movement to complete wave ((iii)) of 3. In the near term, as long as the pivot at 78.88 high remains intact, rallies are expected to fail in 3, 7, or 11 swings, signaling further downside potential in the market.

This analysis provides a comprehensive overview of the short term Elliott Wave view in Oil (CL), outlining the current wave structure, pattern analysis, market status, and future expectations for traders and investors to consider in their decision-making process.