Published 5th December 2018

A nearly complete technical pattern along strength divergence led price action into an important support cluster. Subsequently, crude recorded the biggest bounce since October over the past trading week.

A corrective Elliott wave of primary degree is probably unfolding as we publish this. We expect to see a complex sideways trading range during the next few months. Crude tended to unfold complex behavior during the past few years. Moreover, the global economic expansion since the last financial crisis is more likely to slow down then to accelerate. That is likely to act as a headwind to investor sentiment.

The bounce, which unfolds right, now will probably reach the deepest retracement within most complex wave-B corrections. We’ll have to let price action unfold in order to get more hints regarding the exact short-term path.

The analysis above is a historical abstract of our WTI Crude Premium Analysis. Subscribers can access multiple timeframes, which are not displayed on this page.