View: OIL: Update of the Short Term EWP | The wave trading

Red flag for the Equity Bulls: We have a reversal of Crude Oil

Given the strong sell off during the last 3 days, (today price is struggling to remain above the 0.382 retracement), I believe that we can confer a large probability that the corrective rally from the June lows is over.

I label the move with a Double Zig Zag.

The next 2 key supports areas are located at:

1) 89.65 – 89.36

2) 87.20 – 86.76

If the long-term time frame EWP is a Triangle (an Idea that I posted on July 3), then we could even see lower prices, maybe the 200 w = 81.35

The Triangle could become a valid option only with an eow print below the 20 w MA = 90.46

Regarding the short term pattern a potential Double Zig Zag wave (A) should be almost complete but it can also be counted as an impulsive move with the wave (5) extending.