TechnoMeter

Crude oil prices have quietly rallied while the Bitcoin moves steal the headlines. It appears as though a minor degree triangle pattern has ended as crude oil now presses recent highs. If our Elliott Wave count is correct, this move higher is a terminal wave that once it exhausts, could be retraced early in the new year.


It appears crude oil prices are thrusting higher out of a triangle pattern in a fifth wave of an impulse wave. Using wave 5 measuring techniques one wave relationship shows up near $60.60 per barrel. Look for this wave 5 to subdivide in motive fashion (either as an impulse or as a diagonal). We can also anticipate divergence appearing on an oscillator like Relative Strength Index, which is typical in a fifth wave.

We feel confident in the wave 4 triangle interpretation because in an impulse, wave 4 tends to alternate with wave 2 in the type of wave. Wave 2 was a zigzag wave and wave 4 is a triangle, which fits that guideline of alternation.

Bottom line, we are in a terminal or ending wave of the 4 months advance. Crude oil price may find a terminal point near $60.60 though it does not have to.

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