OIL Reacting Higher Perfectly From Elliott Wave Blue Box Area

In this technical blog, we are going to take a look at the past performance of 1 hour Elliott Wave Charts of OIL, which we presented to members. In which, the rally from 25 June 2020 lows is nesting higher in an impulse structure favored more strength to take place. Also, the right side tag pointed higher & favored more strength. Therefore, we advised our members to buy the dips in OIL in 3, 7, or 11 swings at the blue box areas. We will explain the structure & forecast below:

OIL 1 Hour Elliott Wave Chart

OIL Reacting Higher Perfectly From Elliott Wave Blue Box Area

Here’s OIL 1 Hour Elliott Wave Chart From 7/20/2020 NY update. In which, the rally to $41.08 high ended wave 1. Down from there, the instrument made a pullback in wave 2. The internals of that pullback unfolded as a flat structure where wave ((a)) ended at $39.90. Wave ((b)) ended at $41.08 and wave (©) ended at $38.54. Above from there, the instrument made a rally again & ended lesser degree wave ((i)) of 3 at $41.26 high. Below from there, the OIL made another short term pullback in wave ((ii)). The internals of that pullback unfolded as double three structure where wave (w) ended at $40.29 low. Wave (x) ended at $40.90 high and wave (y) was expected to reach $39.93- $39.33 100%-161.8% Fibonacci extension area of (w)-(x). From there, buyers were expected to appear for more upside or for 3 wave reaction higher at least.

OIL 1 Hour Elliott Wave Chart

OIL Reacting Higher Perfectly From Elliott Wave Blue Box Area

Latest 1 Hour Elliott Wave Chart From 7/21/2020 Asia update. Showing OIL reaching the blue box area & reaction higher from the blue box area at $39.93- $39.33. Allowing members to create a risk-free position shortly after taking the long positions. However, a clear break above prior wave ((i)) high ($41.26 ) still needed to confirm the next extension higher & avoid double correction lower.