If the February 2016 low was the end of a massive 3 wave decline for oil we can expect some serious upside going forward. Wave principles suggest however that a zigzag correction would typically extend to the 100% extension of wave A which is why I describe this chart as only one of the ways of looking at OIL . Details on the chart.
Great insight on a long term view for oil. I too have noted that oil migrates towards the 78.6% level. I noticed that the retrace from the high from 51.612 to 39.201 retraced to 78.6% level to 49.011. The recent move from 49.011 to 43.078 retraced 78.6% to 47.714. I wonder if the entire up move from 26 to 51 is in the process of being retraced. If so oil has the opportunity to stop the decline at 50%, 61.8% or its favorite level of 78.6%. The 78.6% level is about 31.00 - seems almost shocking given the amount of bullishness in the chats rooms here.