FX.co ★ Elliott wave analysis of Crude Oil for October 7, 2021

Crude oil has moved to a new high for the rally starting in April 2020. However, the high it rose to yesterday at 79.78 is most likely the peak of wave B of an expected flat correction, which means we should be looking for wave C lower. If the correction in wave 2 is indeed an expanded flat, then wave C should move below the termination point of wave A at 61.74. It may hit the 38.2% corrective target at 60.42 and maybe even move closer to the solid support at 57.25 before taking off towards the upside again in wave 3. The next impulsive rally will be strong and dive crude oil way above the 79.78 peak.