USO - 1h

USO is approaching the end of a major correction. This pattern may resolve in one more low (OML) into the target box as shown with green (v). The alternative, shown in yellow, is an expanded flat for wave (c) of alt circle iv. Regardless, the time for shorting oil has nearly ended, except on short-term swings or day trades. Preparing to build a long position with verification of a significant low. See USO - Daily analysis idea for additional detail.

MACD and other momentum indicators should build positive divergence on the low, although positive divergence on all time frames is not guaranteed.

Analysis based on Elliott Wave principles augmented by Fibonacci extensions and retracements.

Comment:

Expanded flat appears to be playing out in a complex correction. This correction may have resolved today, though higher targets from USO 9.55 to mid 10s are possible. Regardless, another low to the target box around 7.00 is anticipated to complete the larger-degree decline prior to a new bullish phase starting in oil.