Crude Oil Could See One Final Rally Before a Higher-Degree Correction

Crude oil pulled lower a few weeks ago but reached a very important support area around $88, which marked the swing high in July on the continuation-adjusted contract. In addition, we may be seeing an A-B-C decline in wave 4, with an ending diagonal forming in subwave C. This structure now appears to be causing some stabilization, with price moving back above $95, which also acted as solid support yesterday.

So, the bulls may not be finished yet, and we could still see further gains in the near term. Ideally, price will extend higher in a fifth-wave rally, potentially marking the final leg up before a new, higher-degree slowdown.