Oil has started a strong and impulsive downtrend. Price had almost reached $80 in October and just a few weeks later, price is almost at the round level of $50. What is next?
A bearish continuation is most likely at this moment when taking into the account the massive bearish momentum. A break below the support trend line (green) could see price continue lower with a new low and move towards the Fibonacci retracement levels. As long as the downtrend channel stays intact, price is expected to move down lower but be careful of round support levels like $50.
Oil is showing a strong wave 3 (pink) after completing a 2-year long correction at the recent high. The bearish break below the support trend line (dotted green) completed waves Y within wave 4 (purple).
For more daily wave analysis and updates, sign-up up to our ecs.LIVE channel.