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OIL: 6 Sept ElliottWave

Oil Forex ElliottWave analysis
Oil 1 Hour Chart
Friday, 6 September 2013 at 5:43:00PM AEST
Oil is moving higher in this week, but rally from 104.20 is only in three waves contained by parallel trend-lines which is indication for a corrective rally...
As such, we suspect that market is forming a zig-zag in wave B that may stop around 109 level. Bearish waves are expected as long as 112.20 holds 
(See 4H at bottom)

OIL 4 Hour Chart
Monday, 9 September 2013 at 5:39:00PM AEST – correction in progress

We think that Oil prices are in retracement of wave 4) which can be any type of a corrective pattern; zig-zag, flat, triangle, combination. But because most common are zig-zags we suspect that fall from 112 was wave A followed by current wave B that then needs to find a top around 110-111 region. An impulsive reversal back to 107 will suggest that wave B is finished and wave C underway to 104.00.

Based on this count trader could be interested in shorts for wave C, but keep in mind that we are tracking wave 4) from 112.20 which can also become a complex pattern.

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