close icon

Crude Oil Was Worth Waiting

Yesterday, March 24th, crude oil fell to 38.32 a barrel and people were rushing to offer an explanation for the weakness. Some said that the reason behind the slump is the mounting U.S. stockpiles. Other suggested it is the strong dollar. Iran and Libya’s refusal to join OPEC’s output freeze agreement was also among the many reasons analysts pointed out to explain oil’s plunge. We are not going to offer another explanation. In our opinion, trying to do so is meaningless, because the decline is already behind us. To us, being able to prepare for the move before it happens is far more important than looking for its cause afterwards. Fortunately, we can rely on the Elliott Wave Principle to help us with the task. The chart below, which was sent to our premium clients on Monday, March 21st, proves the Wave principle’s ability to prepare traders for what is coming before the majority of market participants has any idea.(some of the marks have been removed for this article)
6- crude oil 15m
As visible, the 15-min chart of crude oil made us expect a decline to at least 38.36. In addition, the odds of the top at 42.47 being broken were relatively small, so this level was excellent for stop-loss orders. In other words, as long as 42.47 was safe, the bears were supposed to aim at the 38-dollar mark. The week is almost over. Today is Friday and it is time to see how the situation has been developing during the last five days.
crude oil update 25.3.16
The price of crude oil hovered around the confirmation level for a while. However, the invalidation level was never threatened, so the count was still valid. On Tuesday, March 22nd, the bulls finally gave up trying and the decline we have been waiting for began. As it turned out, the waiting was worth it, since crude oil reached our first target on Thursday.
Crude oil gave us another great example of the fact that traders can make accurate forecasts by using nothing more than a chart. No stockpiles, no strong dollar, no OPEC. Just the Elliott Wave principle and your analytical skills. The theory enables you to stay ahead of the news, but what is probably even more important – it tells you when you are wrong by providing specific price levels to guide you in the market’s uncertain environment.

Stay informed with our newsletter

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

Privacy policy
You may also like:

Crude Oil Reaches Bullish Target Amid New Lockdowns

COVID-19 returned with a new force in Europe after the warm summer months. Countries around the continent have entered new lockdowns in an attempt to curb the virus’ spread. The situation in the U.S. has never been worse with roughly 200 000 cases per day. But unlike during the first wave of measures, crude oil…

Read More »

Crude Oil – The Elliott Wave Reason for the Reversal

At the start of last week crude oil was trading at less than $36 a barrel. It was down from $43.84 in August and from $41.91 on October 20th. Fortunately, Elliott Wave analysis helped us prepare for this selloff in advance. So, when the weekly session began, the price of crude oil was down 14%…

Read More »

Crude Oil Bears Make the Most of Their Time to Shine

After the market broke during the pandemic panic and crude oil prices fell into negative territory, a quick and sharp surge followed. WTI climbed to $43.84 a barrel in late-August. But the crisis was far from over and the Elliott Wave principle helped us correctly predict the bearish reversal that came next. Now, crude oil…

Read More »

Crude Oil Gave Bulls a Clear Warning Before it Dropped

It’s been a bad couple of weeks for crude oil bulls. The price had been steadily climbing for months, up over 300% since late-April. In the last days of August, WTI crude oil reached almost $44 a barrel. By September 8th, however, the price was below $36.50. This 17% drop can be explained with the…

Read More »

Bullish Crude Oil Bet Pays Off Against All Odds

When it comes to the crude oil market, last month was one for the history books. The coronavirus pandemic forced the global economy to grind to a halt. This led to a sharp decline in oil consumption, while production was too slow to adapt. As a result, there was plenty of oil nobody wanted as…

Read More »

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 »

More analyses