Since bottoming at $42.36 on December 24, 2018, Crude Oil (CL_F) has rallied more than 30%. The initial rally to $55.75 on February 4, 2019 took the form of an Impulse Elliott Wave structure. We label this 5 waves rally as wave ((A)) of a zigzag Elliott Wave structure in higher degree. Then the pullback to $51.27 ended wave ((B)) as the chart below shows. From there, Oil has broken above wave ((A)), suggesting that the next leg higher in wave (©) has started.
Internal of wave (©) is unfolding as a 5 waves impulse where wave (1) ended at $57.61 and wave (2) ended at $55.02. As is typical of an impulse, we can see the fractal nature with wave (1) further subdivides into 5 waves impulse in lesser degree. Wave (2) unfolded as an Expanded Flat Elliott Wave structure where wave A ended at $56.64, wave B ended at $57.81, and wave C ended at 55.02. Oil is now within wave (3) of (©) and should continue higher while dips stay above $55.02, but more importantly above $51.27. This view will gain validity if Oil starts to break above February 22 peak at $57.81. We don’t like selling Oil
1 Hour Crude Oil (CL_F) Elliott Wave Chart