Crude oil made a nice clear, impulsive recovery from the November lows up to December's 55.44 high that we labeled as wave 1-circled. So the recent slightly lower but still sideways price action is seen as a corrective move. We are talking about blue wave 2-circled that can be finished based on the recent turn up from 50.69, which is looking impulsive on a smaller time frame. As such, an updated wave count suggests that the market can be headed straight to the upside above 55.50, which may open a door for much higher prices this year.

At the moment we could face a temporary correction in wave 2, to around the Fibonacci support zone at the 50.0 or 61.8%.

Crude OIL, 4H