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The USOIL structure shows a bearish impulse consisting of waves ①-②-③-④-⑤. The impulse is part of a cycle degree a-b-c correction.
The first four parts of the primary degree pattern seem fully completed.
At the time of writing, intermediate waves (1) and (2) of the primary 5th wave are completed and we expect wave (3) to weaken prices further.
The end of the intermediate degree wave (5) can take prices down to $11.63. At that level, wave ⑤ will be at the 1.50 extension of wave ③.
With prices trading above the previous we must explore an alternative scenario.
The assumed pattern would see the corrective wave ④ incomplete, which would suggest a triple zigzag in waves (W)-(X)-(Y)-(X)-(Z).
In this scenario, the short-term momentum would likely take prices lower in intervening wave (X) near the $19.40 level and then continue higher in the final wave (Z) near $29.00.
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