Last week, the price of crude oil fell to 43.02. This week, it seems determined to reach the 50-dollar mark. From surplus, through production cuts to supply shortages, it might seem impossible for traders to correctly interpret the plethora of news, which, according to the majority, leads to oil’s volatility. We have to admit it seems impossible to us as well. That is why we do not rely on the news at all. What we rely on instead, is the Elliott Wave Principle, which once again, gave us a hint about what to expect from the crude oil market this week. We, in turn, did the same for our premium clients, by sending them the following chart on Monday, May 16th, before the markets opened.(some of the marks have been removed for this article)
As visible, the Wave principle made us anticipate new highs, interrupted by a short-lived pullback during the five trading days between 16th and 20th of May. In addition, this development was expected to develop between two contracting lines. This whole information was extracted by the chart you see above. No news needed. Now let’s see how does the chart of crude oil prices look today, five days after the forecast.
We can hardly ask for a better outcome. Oil started rising right away on Monday and reached as high as 48.91 on Wednesday, before the bears came back for a short-term decline to 46.71. Currently, crude oil prices are rallying towards 49.00 again. Furthermore, the contracting shape of the pattern is intact.
This is not the first time the Wave principle allows us to achieve such level of precision. Judging from experience, chances are it is not going to be last one, either.
What to expect from now on? What is the bigger picture saying? Is crude oil going to continue even higher or the resistance near 49.00 would turn out to be too strong for the bulls to breach? Prepare yourself for whatever is coming. Order your on demand Elliott Wave analysis now or pre-order the one due out next Monday at our Premium Forecasts section. Stay ahead of the news in any market with the Elliott Wave principle.