Crude

Crude Is another another market that did most of its damage in globex. Matter of fact, it had a positive pit session. Range was $2.46, while volume continued to decline for the 4th staight session.

It appears that we finished 5 waves down of micro degree, thus completing sub-minuette iii. It also appears that we have finished [A] up, of what will be a corrective zigzag. How do we know it will be a zigzag? We have 5 waves up for [A].

Notice the channel line action. We busted through, went and backtested and failed the first time (which we would expect), before being able to work our way back above.

Notice also the monster RSI divergence to finish off iii. Impressive indeed.

We either completed a minuette (a) or (i) leg down there. If they are turning a triangle here (check the daily), then it was an (a).

Regardless, after a brief pause here, we should see additional strength to finish off the corrective with a [C] leg. After that, the resumption of the downside should continue.

Edit: I forgot to talk about the daily channel (see weekend daily chart). Notice where price supported almost to the tick. I think that is important. Perhaps the next leg down finds support again and completes there.

For those of you that don't use channels, I would encourage you to start.