Elliott Wave Analysis of WTI Crude Oil: Bearish Trends and Key Levels to Watch

WTI Elliott wave analysis 
Function - Counter-trend 
Mode - Corrective 
Structure - Impulse for wave 1
Position - Wave 1
Direction - Wave 1 is still in play
Details - Price could currently be in the blue wave ‘iv’ bounce or 2nd sub-wave of blue wave ‘iii’. The two scenarios support an extension lower for as much as the price remains below 81.07.

Since April 2024, the West Texas Intermediate (WTI) crude oil market has been descending into an impulse wave. This indicates that the recovery from the December 2023 low has likely concluded, and prices may extend lower, potentially falling below that previous low in the coming weeks. The long-term outlook for WTI remains bearish. With medium-term price movements now aligning with this outlook, it might be prudent for buyers to reconsider their positions and switch sides on this commodity.

Analyzing the daily chart,

The blue wave X of the primary degree reached its peak at 95 in September 2023. Prior to this, the preceding blue wave W commenced at 130.9 in March 2022 and concluded with a double zigzag structure at 64.56 in March 2023. From the peak at 95, we have been tracking the blue wave Y, which subdivides into an (A)-(B)-(C) zigzag pattern. The high of 87.63 confirmed wave (B), and the current decline is part of wave (C). The impulse wave declining from 87.63 can be identified as wave 1 of (C). This decline has been further detailed on the H4 chart.

WTI-Crude-Oil-daily-...


Examining the H4 Chart

On the H4 chart, the price action is currently undergoing an upward correction within blue wave iv of 1. If the price remains below 81.07, we can anticipate further selling pressure, which would complete blue wave v of 1 before a more significant corrective bounce in wave 2 begins. However, if the ongoing minor recovery surpasses 81.07, it would suggest that wave 1 has already concluded, and the price is now in wave 2. The ultimate invalidation point for this analysis is at 87.63; as long as prices remain below this level, sellers should maintain control in the medium term.

Conclusion:

To summarize, the WTI crude oil market's recent price movements suggest a continuation of the downtrend initiated in April 2024. The completion of the recovery phase from the December 2023 low, coupled with the formation of an impulse wave, points towards further downside potential. Traders should closely monitor the key levels of 81.07 and 87.63 to confirm the ongoing wave structure and make informed trading decisions. As long as the price stays below 87.63, the bearish outlook remains valid, and sellers are likely to dominate in the medium term.

Technical Analyst: Sanmi Adeagbo

Source: visit Tradinglounge.com and learn From the Experts Join TradingLounge Here 

See Previous: Gold (XAUUSD) Elliott Wave Analysis

Special Trial Offer - 0.76 Cents a Day for 3 Months! Click here

Access 7 Analysts Over 170 Markets Covered. Chat Room With Support

WTI-Crude-Oil-4Hr-Co...

Related

The Elliott Wave Analysis for Texas Instruments Inc. (TXN) Reveals a Bullish Trend, Supported by Both the Daily and 1-hour Charts

The Elliott Wave Analysis for Texas Instruments Inc. (TXN) Reveals a Bullish Trend, Supported by Both the Daily and 1-hour Charts

Our Elliott Wave analysis for Texas Instruments Inc. (TXN) highlights a bullish trend, with both dai...

Read More >
ETF is Positioned for Growth as Clean Energy Investments Gain Momentum: GX Uranium Commodity Elliott Wave Technical Analysis

ETF is Positioned for Growth as Clean Energy Investments Gain Momentum: GX Uranium Commodity Elliott Wave Technical Analysis

The Global X Uranium ETF (GX URA) offers investors exposure to the growing uranium market, fueled by...

Read More >
Cardano Crypto Price News Today Elliott Wave Technical Analysis of ADA/USD: TradingLounge Daily and H4 Chart Overview

Cardano Crypto Price News Today Elliott Wave Technical Analysis of ADA/USD: TradingLounge Daily and H4 Chart Overview

This article provides a comprehensive Elliott Wave analysis for Cardano/USD (ADAUSD), offering insig...

Read More >
VAS Stock Analysis & Elliott Wave Technical Forecas: Vanguard Australian Shares Index ETF (V300AEQ) UNITS

VAS Stock Analysis & Elliott Wave Technical Forecas: Vanguard Australian Shares Index ETF (V300AEQ) UNITS

This article provides an in-depth Elliott Wave analysis of the ASX V300AEQ ETF (VAS), highlighting k...

Read More >
S&P 500 Elliott Wave Analysis: Stock Market Forecast, Trading Strategy, Wave Count, Price Prediction & Market Trends Breakdown

S&P 500 Elliott Wave Analysis: Stock Market Forecast, Trading Strategy, Wave Count, Price Prediction & Market Trends Breakdown

S&P 500 Elliott Wave Analysis provides a comprehensive breakdown of market trends, wave structures, ...

Read More >
Stay informed about MicroStrategy Inc. (MSTR) Stocks Elliott Wave Technical Analysis daily and 4-hour chart analysis

Stay informed about MicroStrategy Inc. (MSTR) Stocks Elliott Wave Technical Analysis daily and 4-hour chart analysis

Get an in-depth Elliott Wave analysis of MicroStrategy Inc. (MSTR) to understand its stock forecast ...

Read More >

Buy 1 Month

Get 3 Months!

Special Offer:

Trade Recommendations

Unleash the power of deversified trading with our comprehensive portfolio, covering:

  • Stock Trades
  • Crypto Trades
  • Forex Trades
  • Commodity Trades
Elliott Wave Analysis

Gain a competive edge with expert insights in to:

  • Global Indices
  • US Stocks & ASX Stocks
  • Forex & Crypto
  • Commodities
Top-Notch Trading Tools

Equip yourself with the tools of success:

  • Social Chat
  • Elliott Wave Algorithm
  • Screener
  • TradingLevels
  • Trading Game
7 Elliott Wave Analysts

Stay ahead of the market with daily charts and insightful videos
-Your secret to strategic trading!

JOIN HERE


Welcome to TradingLounge (ASIC A.R.No. 321187), specialists in trades, trading education and technical analysis, covering stocks, indices, commodities, forex and cryptocurrencies.

When you join TradingLounge you have access to everything we offer, including trade tools, educational content and a social platform to chat with like-minded investors.

Read more

@Copyright 2024 by tradinglounge.com

Contact Us

Australian no: 02 4787 6020

International no: +61 (2) 47876020

Pay with:

Find us on