Oil Elliott Wave View: Impulsive Rally in Progress

Oil (CL_F) rally from June 5, 2019 low is unfolding as an impulse Elliott Wave structure where wave 3 is currently in progress. In the chart below, we can see wave ((ii)) of 3 ended at 51.5, wave ((iii)) of 3 ended at 58.22, and wave ((iv)) of 3 ended at 56.79. Wave ((iii)) shows an extension which is typical in an impulsive structure. The internal of wave ((iii)) unfolded as an impulse of lesser degree. Up from 51.5, wave (i) ended at 54.38, wave (ii) ended at 53.28, wave (iii) ended at 57.98, wave (iv) ended at 57.04, and wave (v) ended at 58.22.

Near term, it broke above wave ((iii)) peak opening up now extension higher. While pullback stays above wave ((iv)) at 56.79, expect CL_F to extend higher. We don’t like selling Oil and expect dips to continue finding support in 3, 7, or 11 swing for further upside.