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Oil prices experienced a sharp correction after peaking at $119.7 on March 9, dropping to $76.73 by March 11. Technical analysts using Elliott Wave theory identified this decline as a five-wave impulsive structure, with wave (1) ending at $96.25 and wave (2) forming a corrective rebound. The analysis suggests a potential zigzag rally targeting the $110 area as the next key level. This pattern is based on classical Elliott Wave principles, where wave (3) typically extends beyond the initial impulse, followed by a final wave (5) to complete the structure.
For traders, this outlook highlights a strategic entry point for long positions if the $110 target is confirmed. The commodity market remains sensitive to geopolitical tensions and OPEC+ supply decisions, which could amplify or dampen the projected rally. A breakout above $110 would signal stronger bullish momentum, while a failure to hold above $96.25 could invalidate the pattern.
Middle East investors should monitor U.S. crude inventory reports and regional demand trends, as these factors could influence the trajectory. Key support levels at $85-$88 and resistance at $110-$115 will be critical for position management. Traders are advised to use stop-loss orders below $85 to mitigate downside risks.
