Crude oil right now is trading in a weekly resistance zone (grey box).
It looks like oil is also beginning to form a bearish divergence (yellow dotted line) but this still remeans to be seen. The divergence only plays out when support is broken (grey box). When oil breaks and find support above the grey box then I consider this bearish case invalidated.
From an Elliot wave perspective:
it seems we are forming a 5 wave uptrend since March 2021, whereas wave 5 is completing now. This means that after a completion of wave 5 an ABC downtrend could start.
The support zone:
If we start an ABC corrective wave and so the divergence plays out. Then I expect a breakdown towards the green support box whit strong support at the 100daily EMA (orange line)
It looks like oil is also beginning to form a bearish divergence (yellow dotted line) but this still remeans to be seen. The divergence only plays out when support is broken (grey box). When oil breaks and find support above the grey box then I consider this bearish case invalidated.
From an Elliot wave perspective:
it seems we are forming a 5 wave uptrend since March 2021, whereas wave 5 is completing now. This means that after a completion of wave 5 an ABC downtrend could start.
The support zone:
If we start an ABC corrective wave and so the divergence plays out. Then I expect a breakdown towards the green support box whit strong support at the 100daily EMA (orange line)
As expected.