WTI crude oil: a bullish continuation scenario is developing

After wave three ended on September 15 at $106,96, WTI crude oil began a wave (IV) correction in the form of a double zigzag.

The first decline in wave W ended at $92,32, followed by a recovery in wave X to $100,57. Price then declined again in wave Y to $91,27. Wave Y measured 0,618 of the length of wave W.

This structure suggests that the wave (IV) correction is complete and a new upward move has begun.

From the $91,27 low, an initial impulse in wave I formed and ended at $94,71. The subsequent wave II correction reached $91,37, holding above the starting point of the upward impulse.

The short-term outlook continues to favor further gains. While price remains above $91,37, the current wave count points to the development of the next upward wave III.

WTI is therefore developing a bullish continuation scenario after the apparent completion of the double zigzag in wave (IV). The key condition is that price holds above $91,37, the low of wave two. A break below that level would require the current short-term scenario to be reassessed.