Crude Oil Completed Wave 31. Crude Oil achieved the Wave 3 fibo target; 261.8% of wave 1. (refer to white fibo levels)
2. Since Wave 2 retraced 78.6% of Wave 1 (refer to turquoise fibo level on the left), according to Elliott's alternate rules between Wave 2 and Wave 4, I am expecting Wave 4 to retrace to 50% or 61.8% (refer to yellow fibo levels on the right). Nevertheless, it is still possible for wave 4 to retrace only to 23.6% or 38.2%.
3. But, Wave 3 had extended. So I don't think Wave 4 will retrace only to 23.6% or 38.2%. Usually, profit taking activity will take charge for a while before price resume for wave 5.
4. However, always check the wave count and look out for bullish divergence signal at tf 1H or 30min when price hit the important yellow fibo levels for a high potential reversal. Sometimes the bulls are impatient to resume the climb.
5. A divergence signal that appears at important SnR level, accompanied by Candle Reversal Signal such as hammer , are great hints for a potential price reversal.
