Crude Oil Flashback: The $93 Trigger Is Hit, and Wave Five Is Next

Good day to everyone! Let me take you back to the crude oil chart I shared on October 8.

At that time, oil was turning higher after an ending diagonal in wave C, and I said that a daily close above the base channel resistance around $93 could open the door for much more upside, with 96.84 as the next bullish level. I was also watching Exxon Mobil, which I thought could move back toward its March highs around $176 if oil kept rebounding.

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Since then, crude has closed above $93, broken through 96.84, and the November contract even pushed above $103. Exxon Mobil followed as well and is now trading around $178, above that $176 area. Fundamentals have helped, as attacks on tankers around the Strait of Hormuz and Houthi strikes on Saudi energy sites kept supply fears alive, even after the US eased some Russian sanctions.

So what’s next? We are now following the December contract because of the rollover. After the wave three high near $99.30, I see wave four unfolding now, which I treat as a normal setback before wave five higher. As long as crude holds above $92.50, I remain bullish.

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Grega