Crude Oil: More weakness after rally

Gregor Horvat Wavetraders

Crude oil started the week with some volatility, driven by tariffs and trade war concerns. Despite the initial recovery, I see this as a temporary corrective reaction higher in Elliott wave terms, and that sooner or later weakness could resume. The most important is a five-wave impulsive decline from above $79, that suggests that the trend may have shifted, signaling further downside after an intraday wave B rally.

The first resistance is already around 75.16, but with the sharp price movement into this area, I think there’s room for slightly higher prices within the a-b-c structure. Still, I expect bears to be back this week, as long as the market remains below the 79.36 invalidation level.

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Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

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