TechnoMeter

The crude oil Elliott Wave analysis on the weekly price chart shows a bearish pivot may be occurring near current levels to retrace a significant portion of the previous two-year uptrend. On a weekly crude oil price chart, the Elliott Wave pattern we are following is that the current rise from the 2016 is a wave 4. We are showing this fourth wave as subdividing as a double zigzag pattern labeled W-X-Y. This pattern in general is a bearish pattern and suggests a deep correction may be on the horizon for crude oil prices.



Dialing in to shorter time frame charts, we can see an Elliott Wave chart that is nearing its terminal point if it has not reached it already. The first one is a very bearish scenario depicted on the left side above. This shows wave (b) of Y as a sharp correction that ended on February 14 followed by an ending diagonal pattern higher. Ending diagonal patterns can appear at the end of a long trend and signals a tiring trend.

Using the rules of the Elliott Wave principle, we can place a maximum price potential of this pattern at $74.52. If crude oil prices press beyond $74.52, then another pattern is at play and the diagonal is eliminated.

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