During the whole of September oil
is in a consolidation mode via a complex corrective wave 2. It appears that the last extended wave E is composed of yet another extension of the w-x-y-x-z type. As long as prices remain below the negatively sloping trend line
K-L, there is a high probability of low retesting. Re-examining wave 1 it appears that it is composed of an a-b-c sub-structure, which means that after the end of waves 2 (target 38) & 3 (target 56) a new final declining trend will emerge (targets 30 to 26; ultimate bear cycle lows).