A lot can happen in three weeks! In the Elliott Wave Analysis of Crude Oil posted on 15th August, we anticipated that the price will rise to around 88.10-89.50 and then decline. We had the $71 level in mind, (quite greedily I would say because Oil did come pretty close to achieving that target earlier on, reaching below 76).
This time, though, the sell off stopped at 79.17, still a decent 11% down from where it had topped.
The recovery from 79.17 sent out all kinds of clues to the Elliott Wave trader, (these have been discussed in detail in my book “Five Waves to Financial Freedom”)
The key question now is what should we do here? My suggestion is you should stay on the sidelines. If we get to the mid 94 levels, post me a note on WaveTimes and I will look at the chart again. Will we get there? I am not able to say that at this point in time.