Crude oil has a potential price channel (blue) on its 60-minute chart. The channel would confirm with a lower low before the price breaks out of the channel.
If the channel confirms it would be in its critical decision wave. That’s where a channel either sets up a melt-down or the price consolidates in a bottoming or continuation pattern.
A bottoming pattern that breaks out upwards could mean oil is about to break out of a potential inverse head and shoulders on its daily chart (blue scenario above). The target would be in the low 70s.
A continuation pattern would likely mean oil is heading down to retest its low.
If oil continues down it could complete a triangle that breaks out upwards (green scenario) or downwards (purple scenario). Or, it could just continue down directly to a new low to form a larger inverse H&S.