Brent Crude (BZ) still looking for bottoming sign
|Brent Crude (BZ) is the leading global price benchmark for Atlantic basin crude oils. It is used to set the price of two-thirds of the world’s internationally traded crude oil supplies. It is one of the two main benchmark prices for purchases of oil worldwide, the other being West Texas Intermediate (WTI). Brent Crude formed significant low on 4.20.2020 low at $15.74 and rally almost 10x to $137 in 2022 before pulling back. In this article, we will look at the Elliott Wave outlook for Brent Crude and when to anticipate the pullback is complete.
Brent Crude weekly Elliott Wave chart
The weekly Elliott Wave Chart of Brent Crude above shows it formed Super Cycle wave (II) low at 15.74 in April 2020 during the Covid-19 selloff. Since then it has rallied significantly and ended wave I at 137 in March 2022. It’s now doing a pullback in wave II to correct the rally from April 2020 low. We are still waiting for a sign of bottoming. At this stage, not enough separation is seen yet, thus there’s still a possibility of extension lower. We will use the descending trend line from March 2022 high to guide and warn us that the correction is already complete. In the meantime, as far as the trend line has not been broken, another leg lower still can’t be ruled out to 47.2 – 62.5 where wave (Y) will be equal to wave (W).
Brent Crude daily Elliott Wave chart
The Daily Chart of Brent Crude oil above shows the decline from wave I peak is unfolding as a double three Elliott Wave structure. Down from wave I, wave ((W)) ended at 83.62 and rally in wave ((X)) ended at 99.56. The instrument has resumed lower in wave ((Y)) with internal subdivision as another double three. Down from wave ((X)), wave (W) ended at 75.11 and wave (X) ended at 87.49. As long as it stays below the bearish channel, we can’t rule out further downside in Brent Crude.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.