Elliott Wave Analysis: Crude Oil & Natural Gas Longer Term

Crude Oil and Natural Gas Elliott Wave Talking Points:

  • Crude oil chart shows price nearing the June 2012 low that may act as resistance
  • Additional wave relationships are appearing near $80 that may place a lid on crude oil prices
  • Natural gas Elliott Wave chart is mixed between a sideways complex correction to a bullish wave 3

It appears the current Elliott Wave count for crude oil is wave (c) of circle ‘y’. With circle wave ‘y’ being a zigzag pattern, that means wave (c) is a terminal wave. Therefore, when this current wave finalizes, a large reversal may be at hand. The two day price chart shows some overhead supply and resistance forming near 77.31 and 80.

Back in June 2012, crude oil prices were supported at 77.31. This level has subsequently broken and therefore, 77.31 may act like resistance moving forward.

Many times alternating waves are equal in length or have a Fibonacci relationship with one another. Circle wave ‘y’ would be 61.8% the length of circle wave ‘w’ near 80. If crude oil prices do increase further, we will monitor the 80 level as a potential reversal zone.

There is a cluster

Article source: https://www.dailyfx.com/forex/technical/elliott_wave/oil/2018/10/03/long-term-forecast-oil-natural-gas.html