Oil – Daily Analysis
In this update, we take a close look at oil’s current setup—examining candlestick formations, multi-timeframe indicators, and Elliott Wave structures. We outline the key levels, patterns, and likely scenarios before the next major move takes shape.
CANDLES
Oil extended its move higher following the initial burst of bullish momentum. While the short-term outlook remains bullish, the commodity is now significantly overbought on multiple hourly frames—a condition that could prompt a pullback or at least a pause.
At the same time, the monthly candle is still on track to close with a bearish combo, potentially forming a Falling Three Methods pattern. The long-term frames continue to lean bearish, reinforcing the idea that any upside may be limited.
ELLIOTT WAVES
The purple count remains the primary scenario, with wave c of (b) likely unfolding as an impulse (see chart below). One more higher high is needed to complete the wave structure.
The larger Flag pattern remains intact.
Summary:
Oil closed on a bullish note and currently holds better odds for a continued move higher. However, both Elliott Wave structure and technical indicators suggest that any upside could be limited. As a result, there’s a reasonable chance of a pullback or reversal in the coming days.
Larger timeframes still show a strong tendency toward forming bearish patterns. With the weekly and higher frames maintaining bearish trends, the mid- and long-term outlook remains tilted to the downside.
Happy Trading!
===
