Elliott Wave View: Oil Looking To Break Higher
Light Crude Oil 45 minutes chart below shows that the commodity has ended wave (2) pullback at 37.09 low. From there, the commodity extended higher, with the rally unfolding as a diagonal Elliott Wave structure. Up from that wave (2) low, wave ((i)) ended at 39.35 high and wave ((ii)) dip ended at 37.50 low. Oil then extended higher in wave ((iii)), which ended at 39.89 high. The pullback in wave ((iv)) then ended at 38.85 low.
The commodity then continued to resume higher in wave ((v)), which is unfolding as an ending diagonal Elliott Wave Structure. Up from wave ((iv)) low, wave (i) ended at 40.58 high and wave (ii) dip ended at 39.05 low. Wave (iii) then ended at 41.08 high. Wave (iv) pullback ended at 39.90 low. Currently, wave (v) is in progress and can see another high. This would end 5 waves rally in larger degree wave 1 and also the cycle from June 25 low. Afterwards, a bigger 3 waves pullback in wave 2 should follow before rally resumes higher. As long as pullback stays above 37.09 low, expect wave 2 dips to find support in 3, 7, or 11 swings. If oil manages to break above June 23 high (41.63), it will show bullish sequence from June 15 low. The upside target would be 100% — 123.6% extension at 44.20–45.90.