Crude Oil is confirming the bearish move
The brake of the T1 trend line is a strong signal of a further down move and, many times, the price retests the trend line before resuming the main trend.
The rally in yesterday’s session breached the T1 resistance line but the sellers acted quickly by re-establishing the prices below the T1 line. This move proved that the bears are stronger and there is a high probability of seeing lower lows in the next days.
The main down target remains set in the $83.57 area but this should be re-valued on further decline conditions. However, the previous lows from the $85.00 area are creating a strong support that could lead to a temporary reversal.
The Elliiott Wave count for the current decline shows the developing of the fifth wave that should have five sub-waves. Wave (iv) retraced 50% of wave (iii) and created a flag pattern that contained a false break up. The first target for wave (v) is set at the $85.00 area but in the same time we should be able too see the 5 wave internal structure in order to define a closer end-zone for this down move.
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