USOIL Update

The outlook is speculative as there is no immediate reason for oil to fall that sharply. The diagonal is not pretty and open for interpretations. A picky Elliottician would argue that the black labels and more narrow diagonal (red lines) are more technically correct.

And there is still an alternative view (not shared by me at this point) that the diagonal is the start of new trend up. I still think it is the end of the bounce in the downtrend hence the outlook.