By Elliott Wave International
Elliott Wave International's energy specialist, Steve Craig, just delivered a textbook example of why Elliott wave analysis can be so valuable: He identified the low in crude before the turn, tracked the advance as it unfolded, and then alerted his readers that crude was peaking.
On July 2, Craig told readers:
“[The] most likely wave count suggests significantly higher prices once the Primary wave 3 advance kicks in gear… RSI and stochastics have registered oversold readings and the DSI reached a bearish extreme… the market is getting ripe for an upward reversal.”
Five days later, as crude began to turn higher, Craig’s Energy Pro Service recognized the change:
“Crude’s late-session advance offers an aggressive hint that the Primary wave ((2)) low is in place.”
That was the beginning. Crude subsequently surged from its low near $68 to more than $93.
And then, Craig’s Elliott wave analysis recognized a change. On July 22, he warned:
“[An] interim top should be drawing near.”
The following day, with crude still advancing, Craig’s analysis became more specific:
“I continue to suspect that Crude is in the latter stages of the Intermediate wave (1) advance.”
And on July 24, with crude near its high, he said:
“[The] Intermediate wave (1) peak is in place.”
What happened next?
The charts in the report show the progression clearly: a forecast for “significantly higher prices” while crude was still near its low, recognition that the turn had occurred, then increasingly specific warnings as the rally approached its peak.
That’s why you should read EWI's Elliott wave energy analysis. It doesn’t just explain yesterday’s market in hindsight, like other commentary so often does. It gives you a framework for anticipating what may happen next — and for recognizing when the outlook has changed.
Get more Energy market highlights FREE inside EWI's must-read report >
This article was syndicated by Elliott Wave International and was originally published under the headline Craig on Crude — Bullish Near the Low; Bearish Near the High. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.
