View: OIL: Update of the Short Term EWP | The wave trading

Since August 23 I have been trying to find the correct EWP outlined by the price action off the June lows.

So far I have been failing.

The last idea posted on August 28 suggesting a potential Ending Diagonal is not looking good.

The main idea remains the same as the pattern is clearly corrective, which is a common feature to the majority of the equity indices and also to the EUR. Therefore it is obvious that the 3 asset classes are positive correlated.

In the case of crude oil it is quite surprising that despite bad news coming from China so far it looks “immune” to the risk of the slow down of the Chinese economy.

I continue to look for technical evidence that the corrective advance is over but given the overlapping down leg off the August 23 high it is very questionable that we have an important top in place, therefore like I have been suggesting for SPX and the EUR it looks likely that price should undertake one more up leg.

Below I show another attempt to count the corrective price structure, with a Double Zig Zag, which needs the last wave (C) up.