Short term oil Elliott wave forecast suggests that the rally from 11/14 low is unfolding as a double three where wave ((w)) ended at $49.2, wave ((x)) ended at $44.82. and wave ((y)) of W is proposed complete at $52.43. Near term, while bounces stay below there, oil is expected to turn lower within wave X pullback to correct the cycle from 11/14 low ($42.21) in 3, 7, or 11 swing before the rally resumes.
If oil breaks above $52.43, then it is still within wave W and can open extension to the upside towards as high as $54 – $55.2 area to complete wave W and end the cycle from 11/14 low before the correction in wave X begins. We don’t like selling the proposed wave X pullback and expect buyers to appear after wave X pullback is complete in 3, 7, or 11 swing as far as pivot at $42.21 remains intact. 50 – 61.8% fibonacci retracement from 11/14 low which comes at $46.11 – $47.31 can be an approximate area where wave X pullback can complete
