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Crude Oil: How Elliott Waves Anticipated the Rally

Here’s a historical perspective on Elliott Wave International’s crude oil forecasts

by Bob Stokes
Updated: February 17, 2021

Every motorist knows that filling the car's gas tank costs more than it did a few months ago.

That's when the price of crude oil started to rise. Of course, gas prices at the pump are linked to the price of crude.

Presently, you'll see how the chart pattern of crude provided a big tip-off on the jump in crude prices in the waning weeks of 2020.

However, let's first briefly provide a historical overview of Elliott Wave International's crude oil calls.

Keep in mind that as you look at this chart from the book, The Socionomic Theory of Finance, it took Robert Prechter an entire chapter (43 pages) to go into the details of how Elliott wave analysis called every major price turn in crude from 1993 into 2016:

OilElliott

Indeed, the very title of the chart says it all:

Elliott Wave Analysis Forecasted And / Or Recognized In Real Time All Of These Waves And Their Turning Points

Again, if you want to see the detailed record of EWI's crude oil calls for yourself, they are presented in Chapter 22 of The Socionomic Theory of Finance.

With that historical snapshot as a background, let's review a chart and commentary from our December 2020 Global Market Perspective (wave labels are available to subscribers):

NYMEX

Up, up and away. ... Our working assumption is that [the down wave] ended ... at the 33.64 low, and crude should extend its rally in an impulsive manner.

This analysis was published Dec. 4, and since then, the price of NYMEX crude has risen nearly 32% (as of this writing on Feb. 16).

Get the important details of our current Elliott wave analysis, which includes price targets. Plus, find out if the rally is anticipated to end anytime soon.

It's all inside our comprehensive Global Market Perspective, which you can access by following the link below.

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The only constant in financial markets is change.

Trends turn -- and the price action that follows can be swift and violent.

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