Brent oil, Daily chart:
An analysis on the daily time frame shows the structure of the bundle wave [X], which is part of the global triple zigzag.
It is worth noting that wave [X] takes the form of a double zigzag (W)-(X)-(Y). Earlier, the market entirely finished forming the downward wave of the bundle (X), and then began to move upwards within the final active wave (Y).
There is a possibility that wave (Y) will have a simple zigzag. For example, an A-B-C shape, like the first two sub-waves (W) and (X).
Now, let's talk about the structure of the last part of the chart on the H4 time frame.
Brent oil, H4 chart:
The market fulfilled the formation of the bearish correction B during the start of November 2020. After that, an impulsive price growth was observed.
At present, there is a formation of a bullish impulse wave C, which includes five sub-waves [1]-[2]-[3]-[4]-[5]. It can be noted that the first four parts of this impulse wave are already done forming, while the last sub-wave [5] is still starting its development.
As for the short-term, it shows on the chart how sub-waves (2)-(3)-(4)-(5) form an impulse wave [5]. It is expected to be completed around the level of 79.00, from which the value of wave [5] will be 61.8% along the Fibonacci lines of the impulse [3]. It is very likely to reach the indicated coefficient.
As a result, opening long positions can be considered to be able to take profit at the end of the impulse [5].
The material has been provided by InstaForex Company - www.instaforex.com