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Crude oil prices may drop in short term

From the high of $147/a barrel in 2008, crude oil has been developing a downside corrective period for long term. It made a low at $26/a barrel in February 2016, but do you think crude oil prices will break below that low in the future or not?
Historically, crude oil reached an all time high of $147 in July of 2008 and a record low of 1.17 in February of 1946.

According to my Elliott Wave analysis, crude oil is in range bound for intermediate term that may follow a Zigzag (ZZ) or Contracting Triangle (CT) wave pattern between $55.55 and $26.00/28.00. This type of consolidation is often seen in a fourth wave. In this case, wave (4) may last from one and a half to two years. After that, crude oil prices will fall down to test and break a little below $26.00 before making a big and fast bounce to prepare for a new upside cycle.

At present, $55.55 is a strong resistance zone and price action suggests that bears can be back in control in short term.

By Jack Huyn

Please be informed that information I provide is for educational purposes only and not intended as investment advice. Information and analysis above are derived from utilising methods believed to be reliable, but I cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
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