Decline in Oil (CL) from 7.20.2022 high is unfolding as a zigzag Elliott Wave structure. Down from July 20, wave A ended at 87.01 and wave B rally ended at $97.66. Oil has resumed lower in wave C with subdivision as a 5 waves impulse. Down from wave B, wave (i) ended at $88.27 and wave (ii) bounce ended at $91.61. Oil resumed lower in wave (iii) towards $87.12, wave (iv) ended at $88.63, and final leg lower wave (v) ended at $85.98. This completed wave ((i)) of C.
Wave ((ii)) rally ended at $90.38 with internal subdivision as a zigzag in lesser degree. Up from wave ((i)), wave (a) ended at $89.66, and pullback in wave (b) ended at $86.62. Final leg higher wave (c) ended at $90.38 which completed wave ((ii)). Oil turns lower again in wave ((iii)) with internal subdivision of an impulse. Down from wave ((ii)), wave (i) ended at $85.08 and rally in wave (ii) ended at $87.76. Oil then resumes lower in wave (iii) towards $81.50. Expect rally in wave (iv) to fail below $90.38 for further downside.
From larger point of view, Oil has reached 100% – 161.8% Fibonacci extension area from 3.7.2022 high at $63.3 – $86.3 and this area should be the daily support area for Oil for at least larger 3 waves rally.
Oil (CL) 60 Minutes Elliott Wave Chart