Downwards movement was expected for the week for US Oil, and this is exactly what has happened.
Last week’s analysis expected an upwards swing to continue at least for the short term, which could make a new high above 72.90. Price has moved higher to reach 74.46 for the week.
Last analysis expected that US Oil had entered a large consolidation, with support about 61.0 and resistance about 72.5 to 73.0. Price remains within this zone, beginning now to swing up to resistance.
For the short term, some upwards movement was expected for US Oil. Although Friday ended with very strong downwards movement, the week made a higher high and a higher low.
Last week’s analysis expected that US Oil had begun a deeper and longer lasting consolidation. A downwards week with a lower low and a lower high fits this expectation.
The pullback has reached the lilac trend line where it was expected to find support.
Last week’s analysis expected an upwards trend in place, and suggested pullbacks are an opportunity to join the trend.
Last analysis expected more upwards movement for the week, which is what has happened.
Upwards movement continues as the second Elliott wave count expected.
The new Elliott wave count is bullish.
A short term pullback was expected, but price moved lower only slightly and briefly before making new highs.
A new high above 66.65 has substantially reduced the probability of the main Elliott wave count and increased the probability of the alternate. This week the two wave counts should be swapped over.
A turn was expected. Price has remained just below the invalidation point and printed a red weekly candlestick.
A bounce was expected to continue, with the target at 65.05. So far price has reached up to 65.99.