Video: Upward Potential in Oil (CL) due to Sideways Price Movement
According to Elliott Wave analysis, a cycle from the low of 12.9.2022 is in progress as a 5 wave impulse structure. This wave structure for oil shows that up from the low of 12.9.2022, wave 1 ended at 82.64 and pullback in wave 2 ended at 72.31. The recent low of 72.31 has completed a corrective pattern (a,b,c) that forms Wave 2, and the price is now moving towards Wave 3. Internal subdivisions of Wave 2 took the form of a zigzag Elliott Wave, where wave (i) ended at 79.45, and the rally in wave (ii) ended at 82.48. Oil has now turned higher in Wave 3, with internal subdivisions taking the form of another impulse.
The pullback in Wave 3 is expected to find support in either 3, 7, or 11 swings for further upside, as long as the pivot at 72.31 low stays intact. The current wave structure indicates that oil prices are expected to rise in the future, presenting opportunities for investors interested in trading oil CFDs. The price chart is displaying the Wave structure that is supportive of a bullish outlook for oil, and it is recommended that investors keep an eye out for the price movement in order to make the best trading decisions.