FX.co ★ Elliott wave analysis of Crude Oil for January 19, 2022

Crude oil has broken above the former peak at 85.41 which could lead to more upside towards 93.96 if an expanded flat is unfolding, However, the rally from 62.43 is very extended already, so it would be no surprise to us if crude oil peaks before 93.96 and starts the decline in wave C of 2 towards 62.43.

We have a very hard time view the decline to 62.43 as the complete wave 2 and therefore expect a second dip to unfold soon, but we need a break below minor support at 84.71 to indicate a top is in place and the expected second corrective dip is in motion.