Oil Forming Continuation Pattern Within Larger Trend

Oil extended lower at the end of last week in wave C. Well, we anticipated a five-wave decline from 98.00 but because of an overlap with 96.57, the market actually completed a three-waves move (a)-(b)-(c) down to 95.11. This is a structure of a corrective movement so we think that price action from Jan. 30 is actually an incomplete triangle in wave 4), especially considering that the market did not move through the previous wave A swing level. If we are correct, the market will stay sideways for the next 24-48 hours before price breaks higher, through the 98 mark that will open the door to the $100 psychological level.

What Is A Triangle?
A Triangle is a common 5-wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.