Crude oil is trading lower and based on latest decline through 100 mark and down 96.00 we suspect that larger picture on this market is changing. For now we will focus on current structure which is showing a completed wave B around 103.00 level followed by recent push lower with accelerating price action through 100 mark which we think it was wave (iii), so decline should then be made by five waves down. As such, we think that bounce from the low is just another correction within downtrend. We are talking about wave (iv) that is pointing lower for wave (v), towards 95, 94 zone.

We do not look at copper very often, but I see a triangle on 4h chart, maybe already finished because of recent rally back to 3.318. We however prefer a 3.3500 breakout on a daily close basis to confirm end of a triangle and further bullish waves up to 3.450 maybe even to 3.500.

Elliott Wave Education: Triangle Pattern
A Triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.

Contracting Triangle

Structure is 3-3-3-3-3
Each subwave of a triangle is usually a zig-zag
Wave E must end in the price territory of wave A
One subwave of a triangle usually has a much more complex structure than others subwaves
Appears in wave four in an impulse, wave B in an A-B-C, wave X or wave Y in a double threes, wave X or wave Z in a triple threes

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Ew-forecast.com is providing advanced technical analysis for the financial markets (Forex, Gold, Oil & S&P) with method called Elliott Wave Principle. We help traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our view and bias as simple as possible with educational goal, because knowledge itself is power.

Gregor is based in Slovenia and has been in Forex market since 2003. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets; from candlestick patterns, MA, technical indicators etc. His specialty however is Elliott Wave Theory which could be very helpful to traders.
He was working for Capital Forex Group and TheLFB.com. His featured articles have been published in: Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu. He mostly focuses on currencies, gold, oil, and some major US indices.

© 2013 Copyright Gregor Horvat - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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