A few weeks ago we talked about USOIL. The development of an upward impulse is assumed, which includes the primary wave ③.
The 1H timeframe shows the final part of the primary third wave, where we see a completed impulse wave (3) of the intermediate degree and a bearish correction wave (4) in the form of a double zigzag W-X-Y.
After the correction (4) was completed, the market began to rise in the final intermediate wave (5), which can take the form of a simple 5-wave impulse consisting of minor sub-waves 1-2-3-4-5, as shown in the chart.
In the near future, the price is expected to rise to 90.01. At that level, intermediate wave (5) will be at 76.4% of wave (3).
In an alternative scenario, the intermediate correction wave (4), which is part of the primary third wave, has not yet been completed.
It is assumed that the impulse move in the bullish intermediate wave (3) has just ended recently, and the intermediate correction has just begun its construction.
Thus, in the short term, a correction decline in the market in the minor zigzag A-B-C is possible, as shown on the chart near 58.69. At that level, wave (4) will be at 50% of wave (3).
