Elliott Wave Analysis: Oil Rally Should Fail for more downside

Elliott Wave outlook in Oil (CL_F) suggests that the move lower from 10/3 high ($76.9) remains in progress as a 5 waves impulsive Elliott Wave structure. Down from $76.9, black wave ((1)) ended at $65.74, black wave ((2)) ended at $67.95, and black wave ((3)) ended at 42.27 low. Internal of black wave ((3)) also unfolded as 5 waves impulsive Elliott Wave structure of lesser degree.

As Oil ended black wave ((3)) at 42.27 low. It is currently in black wave ((4)) bounce targeting the equal legs extreme from 12/24 low towards 48.93-51.76 where we expect a reaction lower to take place.

The internals of black wave ((4)) is currently unfolding as a Elliott Wave double correction. Which ended blue wave (W) at 47.03. Below from there it ended blue wave (X) at 44.35 low. Above from that low blue wave (Y) of black wave ((4)) is currently in progress and should ideally see the areas of 48.93-51.76 (Blue box) where a reaction lower is expected to take place. Oil is currently turning up against 42.27 low.