The bullish channel of oil (purple) is now facing massive resistance (red), which is a critical decision zone for a bullish breakout or bearish bounce.
Oil needs to break the bottom of the channel before a bearish breakout is confirmed whereas the bottom (red) and resistance trend line (orange) remain vital for a bullish breakout.
Oil seems to be completing a bullish wave 5 (blue) of a larger wave C, which could indicate that a larger bearish correction is more likely at the moment. Price will however need to break below the uptrend channel before a larger bearish reversal can be confirmed.
On the 4 hour chart, it seems likely that price has completed the first reversal pattern by building 5 bearish waves (orange) of a larger wave 1 or A (red). The bullish correction has stopped and reversed at the 50% Fibonacci retracement level and price is now breaking below the support trend line of the correction. This bearish breakout could indicate the start of a wave 3 or C (red), although price does need to break below the -27.2% target before a wave 3 is likely. A break above the top invalidates the wave 123 or ABC. The purple boxes are indicating a potential head and shoulders reversal chart pattern.