US OIL Structure Remains Bearish (For Now)

US OIL prices continue to decline in what seems to be a wave Y of a double zigzag correction.

The current action suggests that the complex pattern belongs to wave ③  of a primary degree bullish impulse.

As part of an intermediate wave (2), we can expect the dip to complete the combination lower. Prices could move towards – and past – the 61.80% of waves (1)(2), near $64.77.

Should bears break the golden ratio, prices could head even lower down. They could reach the 100% extension of waves WX, near $62.50.

On a different note, when considering medium-term price action, we can see the current short-term structure to be a leading diagonal (of the 33333 variation).

The said alternative comes to the spotlight due to the somewhat corrective-looking structure from the lows of $0.

Should such a scenario prevail, the $77 top would have completed the bullish 3-wave leg. In this case, the downside potential would extend to lower territories.

This is due to the current bearish correction being the first leg of either a 3 or 5-wave pattern to fresh lows.