WTI OIL bottoming soon

Hi Traders, Happy 2015!

The WTI OIL (now at $48.81) is performing a small rebound to $50-$52 before resuming the downtrend to the support area at $45-$42.

After reaching the new low, it should start a long trading range (months) with a top around $69-$70.

TARGETS:

first up to:

likely:$50.20-$50.29

possibly: $51.27-$51.75

then down to:

likely: $45.34-$44.65

possibly: $43.14-$42.04

ELLIOTT WAVES

The weekly chart shows that wave 3 (in magenta) will be fully shaped only by reaching the target down to $45-$42. This will be followed by wave 4, an "a-b-c-d-e wave" that might take few months to reach the top at $69-$70.

The fact that wave 3 is not finished (weekly chart) is revealed in the 4-hour chart where wave 5 downwards still requires the small waves 4 and 5 (in green, font 8) to enfold and fully complete the pattern.

The 1-hour chart also confirms the same ongoing rebound (wave 4) that should lead up to the area around $50-$52 (wave 4). This wave will be followed by wave 5 down to the area $45-$42.

The completion of these 5 little waves in the 1-hour chart will complete wave 3 in the weekly chart.

All of this (1-hour chart) is likely to occur within a week or two.

weekly chart. click to enlarge

daily chart. click to enlarge

4-hour chart. click to enlarge

1-hour chart. click to enlarge