FX.co ★ Elliott wave analysis of Crude Oil for February 3, 2022

Crude is currently testing the 200% target for the rally from 62.43 to 73.34 at the same time we are seeing a clear negative divergence on both indicators opening for the possibility of a top be nearby and a the possible start of the C-wave lower towards the 50% corrective target near 59.70.

That said we must also accept the possibility of the ongoing B-wave being able to extend its rally closer to the 138.2% target of the length of wave A. This target is near 94 and is a quite common target for an expanded flat correction, which we are in the middle of.

A break below minor support at 86.20 will be the first good warning that the B-wave is complete, while a break below support at 81.90 will confirm the complete B-Wave and that the C-wave lower to 59.70 is in motion.