Elliott Wave InternationalmyEWISocioniomics.Net
Home > Energy
Crude Oil -- Everything Is Illuminated
How EWI's Energy Specialty Service sheds light on crude oil's "ambiguous" price action since June 21
By Nico Isaac
Wed, 27 Jun 2012 15:45:00 ET
Add to Facebook Add to Twitter Email to a friend Printer Friendly Get the RSS feed Add to more social media services
Get investable insights sent to your inbox at least once a week – for free. Challenge the way you think about investing with The EWI Independent. Privacy

Ever since crude oil stole the financial show with its June 21 freefall beneath $80 per barrel to an 18-month low, the market's volatility has eased considerably. The single-day surges and dives have given way to steady, sideways moving price action. And, the mainstream hullabaloo has given way to crickets chirping.

But it's precisely when things get quiet that you want to pay attention to the market.
 
While the price action in crude oil over the last week has been described by the mainstream financial media as "unclear," "ambiguous," and "plodding," EWI's Energy Specialty Service has been able to shed much light into the market's near-term trend.
 
Here's how. Elliott wave analysis recognizes 13 patterns on the price charts of liquid financial markets. Each one of these patterns exhibits its own unique "personality" traits. It just so happens, "frustrating, sideways movement" describes the Elliott wave triangle (labeled ABCDE on a chart). Here are some giveaways that one is underway:
 
  • You see a sideways, overlapping, often contracting price move
  • It is developing in a likely 4th wave position of a 5-wave structure, or a B-wave position of an ABC correction.
  • You see a decrease in volume and volatility
Below is an idealized diagram of the possible Elliott wave triangle formations:
 
 
On June 27, Energy Specialty Service presented to subscribers the following chart of crude oil in the 12:39 PM intraday update:  
 
 
 
Between those two converning red lines, that's a triangle. Now, keep in mind that this is a very short-term picture. Elliott wave patterns are "living" and fluid, and this interpretation may change as the price action continues to progress. However, the takeaway message here is the same:
 
  1. While the mainstream analysts are debating supply and demand factors, oil prices are not simply meandering sideways -- they have been moving according to an Elliott wave pattern.  
  1. Regardless of any near-term gyrations on oil prices, which may or may not require us to reinterpret the triangle pattern, the larger trend in oil is still the same.
The latest Energy Specialty Service analysis shows you the key price points (a.k.a. support and resistance levels) that should confirm the larger trend.
 
Subscribe to EWI's premier trader-focused Energy Specialty Service to illuminate the way.
 
 
How Can You Tap into Energy Market Volatility?
 
 
Let EWI's most specialized forecasting service for global energy markets alert you to opportunities happening right now in crude oil, natural gas and other major energy markets.
 
Subscribe today and get instant access to comprehensive intraday and daily forecasts that can help you make smarter trading decisions.
 
 
 
 
 
 
 
 
 
 
 

 

Tags: crude oil, Elliott wave, Elliott Wave Principle, wave personality
Rating: - based on [5 rating(s)]
Rate this content:
  
EWI's Event Calendar
May 13-16     

Las Vegas Money Show
July 10-13       

Freedom Fest Conference


Identify Your Next Opportunity in Oil Now

Energy Specialty ServiceTurn possibilities into probabilities with insight from EWI's Energy Specialty Service, a service designed to help you stay in front of the trend in Energy Futures.

Actionable forecasts across all timeframes help you anticipate and act on opportunities in oil, natural gas and other major energy markets.

Learn how you can put an Elliott wave expert to work for your trading>>

Most ReadHighest Rated
Free Video Course


Learn the Why, What and How of Elliott Wave Analysis

Financial media use news and economic events to explain market moves. Steer clear of this misguided approach. Take part in the Elliott Wave Crash Course to learn what really moves the markets.

Energy


The Elliott Wave Principle is a detailed description of how financial markets behave. The description reveals that mass psychology swings from pessimism to optimism and back in a natural sequence, creating specific Elliott wave patterns in price movements. Each pattern has implications regarding the position of the market within its overall progression, past, present and future. The purpose of Elliott Wave International’s market-oriented publications is to outline the progress of markets in terms of the Wave Principle and to educate interested parties in the successful application of the Wave Principle. While a course of conduct regarding investments can be formulated from such application of the Wave Principle, at no time will Elliott Wave International make specific recommendations for any specific person, and at no time may a reader, caller or viewer be justified in inferring that any such advice is intended. Investing carries risk of losses, and trading futures or options is especially risky because these instruments are highly leveraged, and traders can lose more than their initial margin funds. Information provided by Elliott Wave International is expressed in good faith, but it is not guaranteed. The market service that never makes mistakes does not exist. Long-term success trading or investing in the markets demands recognition of the fact that error and uncertainty are part of any effort to assess future probabilities. Please ask your broker or your advisor to explain all risks to you before making any trading and investing decisions.