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Crude Oil Staging Furious Comeback

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Crude Oil Staging Furious Comeback

Crude Oil prices are staging impressive comeback after last months collapse to -$30. Sentiment in Oil has vastly improved in the past few weeks. Hopes of the supply cut as well as demand rebound help to support oil. Chinas oil demand has come back to the pre-Covid 19 level at 13 million barrels/day. Crude storage report on Tuesday turns out to be not as bad as the original forecast. The projection by analysts is for an inventory build of 1.151 million barrels. The EIA forecast was for a slight build but it turned out to be an actual decline of 0.7 million barrels. This fuels the bets that the worst of the industrys storage crisis has passed.

Prices are still below levels which most producers can make profit. Thus, many companies and shale drillers shut down the operation. The OPEC+ production cut, combined with shutdown of most oil producers, and rising factory activity in China finally lifted Oils price up. As the worlds biggest oil exporter, Saudi Arabia has said they would cut supply to the lowest level since 2002. Demand for gasoline also starts to recover as drivers slowly return to the road as US and Europe plan to relax the lock down measures.

Crude Oil 4 Hour Elliott Wave Chart

Crude Oil 4 Hour Elliott Wave

4 hour chart of WTI Light Crude Oil July contract (CL N20) above shows a possible impulsive rally from 4.21.2020 low. The nest is a possibility but what is clear is that the rally from 5.8.2020 low is an impulse. Short term, the area of 35 37.5 may see sellers for 3 waves pullback. This is the 100% extension from 4.29.2020 measured from 5.8.2020. From there, if the nesting structure is playing out, then the pullback should find buyers for more upside.

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About the author  (by EME PROCESSING AND CONSULTING LLC) was founded in 2005 by Eric Morera. Since inception our company has provided tailored Financial Market Services to thousands of clients.

ElliottWave-Forecast has built a reputation on accurate technical analysis and a winning attitude. By successfully incorporating the Elliott Wave Theory with Market Correlation, cycles, proprietary pivot system, we provide precise forecasts with up-to-date analysis for 42 instruments including FX majors, Gold, Silver, Copper, Oil, TNX and major Equity Indices. Our clients also have immediate access to our proprietary actionable trade setups, market overview, 1 Hour, 4 Hour, Daily & weekly wave counts. Weekend webinar, Live Screen Sharing Sessions, Daily Technical Videos, Educational Resources, and 24 Hour chat room where they are provided live updates and given answers to their questions.

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