FX.co ★ Elliott wave analysis of Crude Oil for January 4, 2022

The temporary rally in crude oil from the low of 62.43 has extended a bit higher than initially expected, but has only just touched the 61.8% corrective target and should soon tune lower again towards our long standing target near 55.31. A drop to 55.31 will complete wave 2 and set Crude oil up for a strong rally in wave 3 towards the low 120-area.

To confirm that the next dip towards 55.31 is in motion we need a break below support at 74.27.