FX.co ★ Elliott wave analysis of Crude Oil for August 12, 2022

Wave 2/ has just tested the 61.8% corrective target of wave 1/ and looks ready to move higher in wave 3/ towards at least 155 and more likely to the 1.618 times extension target near 197. In the short term, we need a break above minor resistance at 101.88 to confirm that wave 2/ indeed has completed and wave 3/ is unfolding. We see short-term support at 87.66. If this support is broken, one final drop lower to 83.00 should be expected, but this scenario is not our preferred scenario. This price move suggests a direct rally above 101.88 and confirmation that wave 3/ is unfolding.