Crude oil is ready to resume higher from Elliott wave perspective, but ideally after a corrective setback with the support at the open GAP.
The price of oil has been increasing lately, and OPEC’s recent announcement to reduce production may cause further upside in the energy market due to concerns that the global banking crisis could impact demand. It appears that OPEC aims to stabilize oil markets, as an excess of oil reserves in the face of reduced demand can be bearish.
Looking at the 4h chart from Elliott wave perspective, we see strong bounce to $81/83 resistance area as wave 3 of a new impulsive bullish cycle, so more upside will be expected, but possibly after a pullback. Notice that current extended wave 3 with a breakaway gap is approaching resistance here at 81/83 area where former wave four swing high can cause some slow down for the bulls. As such, be aware of a higher degree fourth wave retracement, ideally back to fill that open gap when we will again expect a resumption higher.
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