Today's post is about Crude Oil.
Most people always complain about the price of oil (at least in Europe) yet OIL needs to be at certain levels for the economy to function propperly.
Very cheap oil price affects several large industries margins and that always reflects in the financial markets.
Daily chart: CRUDE OIL (WTI/USD)
Check out the major trends going on
Raising oil price's are usually a indicator of how good economy will performance in the foreseable future.
Not a coincidence: OIL had a great year... and SP500 too!
Crude Oil key levels and confluence trend areas
Certainly there will be a massive war between bulls and bear around the confluence area
Prior support will act as resistance. Several trends meet in that place which means loads of action to happen there!
Potential Elliot Wave Count presented. Also, potential targets for wave III
Wave III is usually the sharpest wave and the one that tends to be extended.
Normal wave III are usually 138.2% and 161.8% of wave I.
Extended wave III are usually 261.8% of wave I
CRUDE OIL (WTI/USD): 2hr chart
Let's zoom in to see what's going on in a shorter time frame
Price is accelerating and is easy to spot several continuation patterns: descending pennants and flags
Conclutions
Crude Oil is looking very bullish.
There are several factor that suggest price will continue to raise in the upcoming months.
Beware there are major resistances around the confluence area: key levels, potential targets for Wave III and several trend lines.
For informational purposes only