Elliott Wave View on Light Crude Oil (CL) Favoring More Downside

5 sept

Short Term Elliott Wave in Oil (CL) suggests the decline from 8.13.2024 high is unfolding as a 5 waves impulse. Down from 8.13.2024 high, wave (i) ended at 76.83 and rally in wave (ii) ended at 78.6. The commodity extended lower in wave (iii) towards 72.89 and rally in wave (iv) ended at 74.16. Final leg wave (v) ended at 71.46 which completed wave ((i)) in higher degree. Oil then turned higher in wave ((ii)) with internal subdivision as a zigzag Elliott Wave structure. Up from wave ((i)), wave (a) ended at 73.52 and wave (b) ended at 72.81. Wave (c) higher ended at 77.58 which completed wave ((ii)) in higher degree.

Oil extended lower in wave ((iii)). Down from wave ((ii)), wave i ended at 73.82 and rally in wave ii ended at 76.91. It then extended lower in wave iii towards 69.19 and wave iv rally ended at 71.46. Expect Oil to end wave v soon which should complete wave (i) in higher degree. Afterwards, it should rally in wave (ii) to correct cycle from 8.26.2024 high before it resumes lower. Near term, as far as pivot at 77.58 high stays intact, expect rally to fail in 3, 7, 11 swing for further downside.