Oil Daily Analysis
Oil precisely hit the target we set on August 1st and bounced off the major pivot level.
In this daily overview we will talk about technical events and candles on various frames, and discuss the short term perspectives using Elliott Waves.
CANDLES
Oil possibly completed a Deliberation combo on the daily frame. The formation has better odds to resolve downwards.
The weekly closure was bearish and the monthly has a good chance to close with the bearish odds (unless a very strong rally happens till the end of March).
The larger candles and the odds remain the same, as discussed in the latest Weekly Report on March 18th:
https://investingangles.com/2023/03/18/oil-weekly-analysis-oil-oil-oott-commodities/
CLASSICAL PATTERN
From the analysis on March 16th: “Oil perfectly hit the $65 target after a Double Top. However, riding the double distance after the Double Top is not that uncommon. Provided the candle and technical support, oil has a better chance to fall towards $34 than to bounce off the $65 pivot level.”
This one stands.
ELLIOTT WAVES
Long Term
I am tracking 2 possible counts on the long term chart. The red count remains intact for six months and oil is down over 40% after our call in June 2022.
The purple count can be viewed in the weekly report.
Short Term
Oil has possibly completed the first wave off the bottom and is ready to pullback into the rectangle area in the next few days.
Summary:
Oil is slightly bearish for tomorrow. In order to develop a bullish reversal, it has to form a bullish combo on the weekly frame, which would be an extremely challenging task for this week.
Oil has been in a bear market since June 2022 when we called the top. Oil has lost over 40% since that call.
As I mentioned previously, “oil needs to print at least a strong monthly bullish formation in order to reverse this long term bearish train.” It failed to do so in November, December, January, and in February consistently. So far, oil is tracking for a bearish closure in March.
Multiple long term targets were covered in details in the weekly reports.
Good luck!
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