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BRN, D1 time frame:
Let's analyze the situation with Brent oil in today's review.
The daily timeframe will help us understand what pattern the market is forming in the long term.
There is a high possibility that a global triple zigzag is being formed, as part of which the wave bundle [X] has been built for more than five years. This wave bundle takes a large double zigzag (W)-(X)-(Y) form. The sub-waves (W) and (X) are simple zigzags, and are already complete. The wave (Y) is also a zigzag, but it is still in the process of development.
Now, let's take a look at the structure of the last active wave (Y) on the 8-hour time frame.
BRN, H8 time frame:
It can be seen that the upward wave (Y) consists of three sub-waves A-B-C. Its formation began a year ago. During this time, the market has completed forming the first two parts of this wave.
Here, wave A is a bullish five-wave impulse, while bearish corrective wave B is a simple zigzag [a]-[b]-[c]. Since the decline of 2020, the prices of oil have started to rise as part of the final impulse wave C. It consists of five sub-waves [1]-[2]-[3]-[4]-[5], where four of them seem to be fully formed, and the last fifth wave is at the beginning of its development.
Let's look at the layout of the last section of the chart on a two-hour timeframe to more accurately assess the market situation and make trading decisions.
BRN, H2 time frame:
The two-hour timeframe shows the structure of the upward impulse wave C.
The horizontal correction wave [4] was completed not so long ago, which took the form of a converging triangle (A)-(B)-(C)-(D)-(E).
Based on Elliott's rules, after the completion of the triangular figure, the market continues to move in the same direction in which it moved before the construction of the triangle. So, we see that the price continued to increase after the end of the wave [4].
It is likely that the final wave [5] will be a simple bullish impulse (1)-(2)-(3)-(4)-(5). So far, only the first two small sub-waves of this impulse can be seen. Thus, market participants will see an increase in oil prices within the remaining three sub-waves (3)-(4)-(5) towards the level of 79.00 in the next few trading days.
Schematically, we have shown the possible structure of the wave [5] on the chart.
According to the assumptions, opening buy deals will be considered in order to take a profit at 79.00.
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