Crude

Price action played out exactly as expected today.

We finished the little [A][B][C] to the upside to complete sub-minuette b and then started tracing c down.

It appears that we have completed the first 3 legs, while currently working on wave [4]. We should finish this up in short order, as well as the remaining wave [5].

At that point, we would expect impulsive price action higher. This of course assumes we have structure pegged correctly.

Wave [4]appears that it will take on the form of either a triangle or a flat. The (A) wave clearly looks like a double zigzag to me, which is considered a 3.

There is a nice inflection point at the meeting of the mid-line and upper boundary line. The 127.2% projection rests in the same area. Would be a nice place to turn price.

Though not shown on the chart, (C) = 61.8% of (A) at 78.57, basically in the same place as the inflection point.

Notice that we have retraced to the 4th of lessor and just shy of the 50% level. I really would prefer that (C) not get much above this level.

In case you hadn't noticed, we are on the January contract now.