Crude Chronicles: Unveiling the ZigZag Symphony - Quest for $55Crude Oil NYMEX:CL1! !
Let's delve into a crucial chart, our beloved Crude Oil (CL1!) Futures Contract. Starting the count post the pandemic dip, we've completed a 5-wave cycle reaching $130. After a subsequent drop, the Wave C formed in March 2023. Following that, in my analysis, we've crafted an upward Wave X around $95. Currently, we seem to be descending to form Wave Y or Wave II of the overall cycle, expected between $55 and potentially lower, around $50.
This range holds significance, encompassing the Y-extension from 127.2% to 138%, and precisely the 61.8% retracement of Wave II. An essential zone, it coincides with a tiny accumulation phase from 2021, aligning with the 61.8% level.
Zooming into the 2-hour chart, the B to C wave reveals a 5-wave structure, typical of a ZigZag pattern (5-3-5). Therefore we should see a 5-wave structure to the downside. Analyzing the current sequence, we've completed waves 1, 2, and 3, hitting the 161.8% mark – a minimum target for a Wave 3.
We are anticipating a retracement for Wave 4 within 38-61.8%. A potential Flat pattern suggests the 38.2% level could act as support, projecting a move downwards after a slight surge. The primary scenario envisions a move to $55, invalidated if Wave ((iv)) surpasses the Wave ((i)) level, marked as "Invalidation," precisely above 61.8%.
Several factors indicate a downward trajectory, making $55 a plausible target.
