Crude oil is in a sharp downtrend for the last few days, but based on a bigger trend and pattern, we still think that weakness will be temporary and that sooner or later market will recover.
That said, we are looking at big fifth wave drop here from 46.00 swing high, which represents final leg in diagonal pattern with a throw-over formation. Usually diagonal causes a strong reversal in price, so we are watching for evidences of a turn.
Technically, we have all needed subwaves in place, but we need a strong leg up and daily close above 44.30 bullish level to confirm a low in place.
Crude oil, 1H