It's been 6 weeks since the last post of Oil http://www.wavepatterntraders.com/elliott-wave-analysis-of-uso-oil/ In that time we have a seen a great decline for those that have been short this market, looking at the gyrations I think based on the CL contract, I suspect USO is only ending wave 3, so whilst we should be close to a short term low for wave 3, the likelihood is that any bounce for wave 4 should prove to be a bull trap and then target new lows for wave 5.
For those that have been riding this lower I suggest some caution now as a decent bounce can easily see the 17.50 area before a resumption lower.
Looking at SCO it too appears to be ending wave [iii], so a dip for wave [iv] then new highs should align with the movements on USO, So look to buy the dip on SCO as I still suspect we have one more high to come before a 5 wave impulse wave is complete, so a bounce on USO, then new lows to end a 5 wave impulse wave for wave .
Until next time,
Have a profitable week ahead.