By the look of things on hourly chart of crude oil, we can see that a leading diagonal was made in wave 1 of a higher degree. As such, a new three-wave deeper correction can unfold within wave 2, with first support coming in around the 63.05 swing low, and the second coming in near the 62.31 level. Their corrective wave 2 can end its pullback, and push the price into a new five-wave cycle for black wave 3.
Crude oil, 1h
When diagonal triangles occur in the fifth or C wave position, they take the 3-3-3-3-3 shape that Elliott described. However, it has recently come to light that a variation on this pattern occasionally appears in the first wave position of impulses and in the A wave position of zigzags. The characteristic overlapping of waves one and four and the convergence of boundary lines into a wedge shape remain as in the ending diagonal triangle. However, the subdivisions are different, tracing out a 5-3-5-3-5 pattern.
