Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Oil : Bearish Reversal Underway

|Includes: iPath S&P Crude Oil Total Return Index ETN (OIL)

WTI crude oil has turned nicely and sharply lower from 50.90 where we suspect that market accomplished wave 4 corrective retracement from the low. Notice that move was made by three waves so it must be a temporary recovery that is now complete. The reason is recent decline back beneath 47.70 swing support that puts highs in place. That said, we expect more weakness now, especially after wave ii) is complete around 48.30.

Crude OIL, 4h

Crude Oil, 4h

If you like our trading ideas, you can visit our website at --> www.ew-forecast.com

Want to receive more insights like these, free? We'd be happy to email them to you. Join our mailing list >> http://goo.gl/0KctEr