Crude oil has turned sharply lower a few days back so it appears that five wave rally up from 35.19 is completed, thus a new three wave move down is underway. We are expecting a corrective decline, labeled as blue wave four that will ideally retrace back to 43-45 area, where we see 38.2% Fibonacci support, as well as length taken of wave two, where both can act as a turning point higher.
Crude Oil Daily Chart
On the lower time frame, Crude oil turned nicely down this month from 51.65 where we see end of an extended blue wave three, so our wave count suggests that bearish structure with three legs down is now underway in wave four. We are looking at wave B) at the moment which may stop near 50 psychological figure, between 61.8 and 78.6% Fibonacci level that in most of the cases represents a very good reversal zone for corrective waves.
Crude Oil 4 Hour Chart