From the wave count,
1- it could be continuation of corrective wave "C",
2- or completing mega wave 2. Either way a retracement of 0.618 (35.68) is very expected.
3- Also a retracement to wave 4 of lower degree from previous run (wave 4 at early April 2016) is also expected.
If the price goes below 34.72, then it invalidate all the analysis above. So we have until 34.72 for this analysis to stay valid.
4- The price has to leave the blue channel from the right for any possible long, but as long as the price is withing the blue channel then forget the long of oil .
Good luck and trade with care.