USOIL shows the development of the final part of the global impulse wave of the cycle degree. The final primary wave ⑤ takes the form of an intermediate impulse.
In early April, an intermediate correction wave (4) ended in the form of a minor zigzag. Prices then began to rise in the intermediate wave (5). We see that sub-waves 1 and 2 have a corrective structure. Thus, the entire wave (5) can take the form of an ending diagonal 1-2-3-4-5, as shown in the chart.
The end of this construction is possible near 124.76. At that level, wave (5) will be at the 50% Fibonacci extension of impulse (3). If this level is broken, prices could rise even higher to 132.24. At that level, wave (5) will be at 61.8% of impulse (3).
Let’s consider an alternative scenario in which the construction of the intermediate correction (4) has not completed yet. Perhaps it will have a horizontal triple three W-X-Y-X-Z pattern.
The minor sub-waves W-X-Y-X look completed. A downward movement is now likely in the actionary sub-wave Z. This could take the form of a minute simple zigzag ⓐ-ⓑ-ⓒ.
Oil prices could fall to 90.39. At that level, intermediate correction (4) will be at 61.8% of impulse (3).
After the end of the sideways movement, the market is likely to grow above the maximum of 129.56.
Article by Orbex
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