The Crude has gained more than $3 since the beginning of this month. Can we relate this move technically to a complete Elliott wave pattern? What about a forecast based on this?. The following forecasts the prices of Crude oil based on 5 September Crude Oil Elliott wave analysis and forecast.
05 September, AtoZForex - There are so many factors that can affect the prices of any commodity. Basic economics shows higher prices for a commodity when there are more demands than supplies. A commodity's price should also fall if the supply exceeds the demand. That's the basics that everyone understands. In the financial market, there are forces that are so varying that can lead a trader, who is not equipped with the right information and knowledge, to fail and fail again. We have discussed the importance of knowing how to read the charts to cut short the journey. Elliott wave theory is top among the best technical market tools to forecast the market's future - near and far.
In this article, we will look at the Crude Oil and check what pattern is emerging and the effect of its completion on the market. These patterns are liquid forces that reveal the psychology of market participants (demand and supply) at any given time. The chart below shows the wave count of Crude Oil.
5 September Crude Oil Elliott wave analysis: intermediate forecast
Crude Oil Elliott wave analysis, Daily (click to zoom)
Since 2016, prices has grown significantly after the completion of a long term impulse wave. Since June 2016, price direction has gone sideway between $55 and $39 in a period dominated by so much talk about Oil producers' Oil cut deal. Price may still be contained in this 39-55 range until next year. A triangle pattern looks like the most likely with the first three legs already complete. A d-wave should take price to around $51-53 in the coming weeks. let's take a closer look at the sub-waves of the d-wave.
5 September Crude Oil Elliott wave analysis: intraday forecast
Crude Oil Elliott wave analysis, H1 (click to zoom)
The d-wave could end up as a double zigzag. The second leg has already completed and there was a breakout. This significant breakout is expected to lead price to $51-53 this month. We will see what happen afterwards. Make sure you are around for the update.
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