Once I had a look at the intraday chart I had to bump it up to 3500 bars from my normal 500. This allows us to go back further, but still keep Intraday settings. At the $65.36 price level crude oil could be hitting a brick wall, at least in the shorter term. We have a double top and a big obvious Head. In true bull markets, these types of H&S setups can be very bullish, But if we are ending a bullish phase, then this H&S pattern can be an ominous warning.
It sure looks like a bullish zigzag but I do have choices depending what oil will do next, if it crashes with another zigzag, then a triangle will work, but if any decline looks more like a 5 wave sequence, then an expanded flat could be completed.
We could roll around the $56 price level for a little while, before oil turns and soars again. I think if another zigzag develops heading down, then we should get a big “b” wave counter rally. I will give crude oil until the $55 price range, but after that the wave counts could get trashed rather quickly.
I thought I would add this chart that paints a very bearish picture for oil. Gasoline never even came close to a double top, so this oil is also a good candidate for a wave 2 top. If this scenario becomes true, then no Fibonacci $55 price level will hold!