USOIL Daily chart is at a critical point as it reaches the 61.8% Fib retracement of the correction so far. The important thing to note is if the WXY correction is complete and if bullish momentum dies at the trendline, we might get the Z wave. On the other hand if price breaks out of the corrective structure with conviction, then it will be a bullish impulse. Of course there will be plenty of opportunities and pullbacks to enter long. For now, I expect a swift reversal to complete the Z wave. Whichever way the market wants to move, let it confirm first. Trade with caution.
Please elaborate how we confirm a bearish move. What do you mean to note if the WXY correction is complete?
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Because the current correction is wave two, I would expect for it to reach at least the 61.8% fib ratio. But it bearly reached 50%, so it makes you wonder if there is another wave coming down. On the other hand, WXY is in itself a valid ZigZag correction. So if price breaks the trendline and keeps moving, then we have to conclude that the correction was complete with the WXY. But until that happens the expectancy is for a Z wave down. Hence the short bias. Hope this helps