Oil (CL) Anticipating a Decline from $64.7 Level

Crude oil (CL) exhibits a bearish trend following its June 23, 2025, peak, signaling further declines. The ongoing descent forms a zigzag Elliott Wave pattern. From the June high, wave A dropped to $64, while wave B rebounded to $70.58, as depicted in the accompanying one-hour chart. Wave C, now unfolding, breaks into a five-wave impulse structure. From wave B’s peak, wave (i) concluded at $68.56, followed by a wave (ii) rally to $69.58. The commodity then fell in wave (iii) to $66.56, with wave (iv) recovering to $67.74.

Currently, oil continues its decline in wave (v), reaching $61.94, completing wave ((i)) in a higher degree. A corrective rally in wave ((ii)) is underway, structured as a lesser-degree zigzag. From wave ((i)), wave (a) climbed to $64.15, followed by a wave (b) pullback forming a triangle, ending at $62.52. Wave (c) is now advancing toward the $64.68–$66.01 range, corresponding to a 100%–161.8% Fibonacci extension of wave (a), to complete wave ((ii)) before resuming the downtrend. In the near term, as long as the $70.58 pivot holds, expect corrective rallies to falter in a 3, 7, or 11-swing pattern, paving the way for further declines.