close icon

Crude Oil Soared Before Russia-Saudi Arabia Cuts

The price of WTI crude oil plunged from $53.74 to as low as $43.73 between April 12th and May 5th. This 10-dollar sell-off surely made the bears feel almighty, but instead of accelerating to the south, oil prices bounced up to close the week at $46.46. Before the market open the next Monday, May 8th, we sent our clients their Elliott Wave analyses, which include several charts and plenty of explanations. One of the charts our crude oil subscribers received is shown below.(some marks have been removed for this article)
wti crude oil elliott wave chart
The sharp leap from $43.73 plus the wave structure of the preceding crash suggested the recovery was likely to continue towards the resistance area of $49 a barrel, at least. So we did not want to short crude oil right away, because the bulls seemed determined to lift the price higher. Eight days later, the price is hovering around $49.00, after reaching $49.63 yesterday.
crude oil updated elliott wave chart 16 may 2017
Mainstream media is using the production cuts agreement between Russia and Saudi Arabia, announced yesterday, as an explanation for the surge. The Elliott Wave principle, on the other hand, successfully prepared us for it a week ago. The question is, if oil soared before the cuts announcement, could it fall now, in anticipation of something else to happen?



Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

A Pattern + Drone Attacks Equals an Oil Price Spike

The price of WTI crude oil spiked at the open on Monday, following drone attacks on Saudi Arabian oil facilities over the weekend that practically cut the kingdom’s output in half. How long will it take for output to be restored and is the situation going to escalate from here remains to be seen. The…

Read More »

Crude Oil Bears Needed a Spark. Trump Threw a Bomb

The price of crude oil recorded its biggest daily decline in four years Thursday after President Trump threatened to impose new tariffs on $300 billion worth of Chinese goods. The U.S.-China trade war has been unfolding during most of Trump’s presidency. With the 2020 elections approaching, many thought a trade deal might be in the…

Read More »

Crude Oil Bears Needed a Week… And Mike Pompeo

The price of crude oil has been marching upward since early June, when it bottomed at $50.59. By July 11th, a barrel cost $60.91. Unfortunately for the bulls, the rally came to a halt after Secretary of State Mike Pompeo stated Iran was willing to negotiate on its ballistic missile program. To the oil market,…

Read More »

Elliott Wave Setup Helps Crude Add 8.4% in a Week

The price of crude oil is approaching the $61 mark helped by U.S.-Iran tensions and a 9.5-million barrel decrease in US inventories. A rally in oil prices might seem easy to explain now, but it wasn’t so obvious a week ago. On July 3rd, crude was barely holding above $56 a barrel after a decline…

Read More »

Crude Oil Shows Why Alternative Counts Matter

Trade war fears are officially back, causing indiscriminate selling of stocks and commodities alike. Crude oil has been hit especially hard as supply glut worries are also beginning to reemerge. Crude oil closed at $53.34 a barrel last week, but this selloff was triggered by the breach of a key level in the week before…

Read More »

Crude Oil Made an Elliott Wave “Push-Up” Last Week

It has been an eventful week for crude oil traders. On Wednesday, January 16th, the EIA revealed that inventories have decreased by 2.7 million barrels from the previous week. In the same time, it became clear that U.S. oil production rose to a record high of 11.9 million barrels per day. The first piece of…

Read More »

Catching Crude Oil ‘s $7-Rally Amid Supply Glut Fears

Crude oil bulls got slaughtered in the last three months of 2018. Between the start of October and the end of December, the price fell by over 45% from $77.07 to $42.21, sparking fears of a new supply glut. Then, the selloff’s sudden stop caught nearly everyone by surprise. Yesterday, WTI crude oil reached $52.48.…

Read More »

More analyses