WTI crude oil broke higher this week, above $48 per barrel, which means that wave (b) is completed. It was a triangle pattern that sent price up into a new impulse. We see wave (c) in progress up to 51-52 area. Ideally, bulls will slow down there and even make a bearish reversal, as we still think that the move from August low is a temporary sharp correction in wave four. We however, need five waves up from 43.97 before we can call an end to the current wave (c).
A Triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to E, and from waves B to D. Triangles are overlapping five wave affairs that subdivide into 3-3-3-3-3.
Basic Triangle Pattern:
Crude OIL, 4h
