In our previous analysis on crude oil we stated that prices could go higher, if the market decides to make wave (2)/B more complicated. On the chart below you can see that this is exactly what happened. What we have now, looks like a double zig-zag labeled w-x-y. Double zig-zags are counter-trend movements, after which the larger trend should resume. Furthermore, prices are near the important 61.8% Fibonacci level, which could serve as a resistance. In other words, as long as 105.20 – the right place for a stop-loss order – stays untouched, our outlook on crude oil will remain bearish. If this is the correct count, crude oil could go below 97.00 $ during the next one or two months.
