Oil – Daily Analysis
In this update, we closely analyze oil’s current setup—reviewing candlestick patterns, multi-timeframe signals, and Elliott Wave structures. We highlight the key levels, formations, and most probable scenarios ahead of the next major move.
CANDLES
Oil closed July with a green candle, but in the context of surrounding technical indicators and prior candles, it’s hard to call it bullish. There’s a strong possibility the commodity completed a Falling Three Methods setup—though we’ll need to wait through August to confirm how it plays out. For now, the monthly closure is best described as neutral, leaning slightly bearish.
Today’s daily candle formed a Bearish Engulfing, but it came on weak technical footing. Confirmation and clearer momentum signals are expected with tomorrow’s weekly closure.
Overall, oil remains moderately bearish. However, a broader bearish reversal has not yet been fully confirmed.
ELLIOTT WAVES
The purple count remains the primary scenario, with wave c of (b) either completed or very close to completion.
The larger Flag pattern remains intact.
Summary:
Oil’s rally was interrupted by a Bearish Engulfing candle, which—if confirmed tomorrow—could mark the start of a reversal. Several key short- and mid-term frames are set to close tomorrow, and their signals will likely define the near-term momentum. As it stands, oil is slightly bearish, with rising odds of a move to the downside.
Happy Trading!
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