Oil – Daily Analysis
This technically grounded outlook breaks down the latest patterns, indicators, and setups across several time frames. Whether you’re a day trader, swing trader, or long-term investor, it’s designed to guide your next steps as oil approaches a critical decision point.
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https://investingangles.com/category/commodities/oil/
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CANDLES
Oil did not confirm yesterday’s Bearish Engulfing, reducing—but not fully eliminating—the risk of a bearish reversal. The commodity climbed above the 50 DMA and held the level, while the 8/20 EMA bullish cross continued to expand. The 2D frame closed with a potentially bullish continuation combo, adding to the constructive setup.
At this stage, short-term odds are slightly bullish, with a fair chance for a bullish weekly closure tomorrow.
Classical Pattern – Flag
So far, the potential flag is not confirmed.
ELLIOTT WAVES
Road Map
(no changes, just an updated chart)
Oil is currently at a key inflection point—just a step away from invalidating the red impulsive count if it closes above the horizontal level. It’s starting to look like the bear suit may soon be shelved, but let’s hold off until we get a clear confirmation.
Last Wave
There have been several impulsive or motive waves in both directions, suggesting that the current structure could be unfolding as a zigzag for wave (ii) in green. At this point, no count is considered primary—momentum confirmation is still needed, as detailed in the candlestick section.
In parallel, oil appears to be forming a rectangle pattern. A decisive break of either boundary will likely establish the next directional move and set the stage for a measured target.
Summary:
(almost unchanged)
Oil remains at a critical inflection point, with its current stance best described as neutral, slightly bullish after today’s close. If the recent bullish mid-term momentum continues, the weekly frame is poised to flip bullish, potentially marking the start of a new bull phase.
A sustained rally over the next few days could establish a short- or even mid-term bottom, possibly forming a Double Bottom. Technical setups on the 12-hour chart support this scenario, with a developing bullish flag and multiple indicators aligning in favor of an upward move.
From an Elliott Wave perspective, oil is approaching a key horizontal level that would invalidate the red impulsive count if breached. At this stage, the green count appears more favorable, though it still requires stronger confirmation.
Overall, oil remains undecided across several time frames. The upcoming weekly closure is likely to determine the dominant trend and shape the outlook for the month ahead.
Happy Trading!
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