Triangle Consolidation on Crude OIL Points Towards $80 per Barrel – Elliott Wave Analysis

Hi traders,

Crude oil has recently fully unfolded a triangle correction in blue wave 4, which found support near the 67.00 area and from there broke higher. We can see a decisive break above the upper triangle line, which confirms a completed correction and more upside into wave 5, which can target region near the 76.81/81.00.

Crude oil, Daily

A Triangle is a common 5-wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves, B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.

A triangle correction:

Now switching to the 4h chart, where we have a better look at the bullish development which started at the 66.64 level. We specifically see price making a five-wave rise within wave 3), which can look for resistance in the near future, so be aware of a red wave 4) pullback, ideally into 73.00 area, from where more gains may follow.

Crude oil, 4h

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