Article details
The article provides an Elliott Wave technical analysis of crude oil (CL) prices, outlining a five-wave impulse pattern starting from a December 16, 2025 low. Wave (1) concluded at $66.48, followed by a corrective wave (2) ending at $61.12, and a resumption of upward momentum in wave (3). Analysts suggest the structure indicates potential for further gains, though war-related volatility could disrupt the pattern. Traders are advised to monitor key resistance levels and volume patterns to confirm the validity of the wave count. For commodity traders, this analysis offers a framework to assess short-term oil price movements amid geopolitical risks. The Elliott Wave approach helps identify potential entry and exit points, though its reliance on subjective wave counts requires validation through additional technical indicators. The ongoing conflict in Ukraine and Middle East tensions remain critical factors influencing oil market dynamics. Investors should watch for confirmation of wave (3) extension and potential wave (4) corrections. A break above $75 could signal a bullish continuation, while a failure to hold $65 may invalidate the pattern. Broader energy market trends and OPEC+ policy decisions will also shape near-term price action.
