The downside break we have been looking for over the last couple of weeks finally materialized yesterday. Not alone did we see a break below minor support at 96.57 on the 8 hourly chart, but more importantly the break below 96.57 also meant we saw a clear break below the long term support-line back from January 2009 on the weekly chart, which will add considerably downside side pressure here.
Short term I will be looking for a test of 93.57 as the first possible target of wave (v) and I of 3, but if 93.57 is broken too, then we should be looking for an extension in wave (v) lower to 90.75. It's not uncommon for commodities, that the fifth wave extends.
However, longer term we should see an even strong decline towards in wave 3 towards at least 86.80 and possibly even deeper towards 74.02, where wave 3 will be 161.8% of wave 1 and at the same time meet the 50% corrective target of the rally from 33.22 to 114.81.
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