I had mentioned that I had a target of about $35-$36. Crude oil fell short of $35 by 18 cents or so.
The thing is that the last bullish attack was more like a diagonal 5th wave so, a correction should ensue, which oil looks like it already has started. Incidentally,
oil stopped a bit above the Fibonacci $34 price level.
We have had a few spikes on its journey to get to $35 but this is telling me that many traders are still playing crude oil short and the spikes being created are protective stops getting hit. The act of bears instantly turning to bulls.
If all this is real then crude oil will be on a big test to see if the rally is a fake or is it for real. If another leg is to happen, then oil should display some type of corrective pattern, preferably another zigzag. If it shows a flat, then it will be a big move up. Oil has lots of room to crash and can crash down to the $29-$30 price level with little effort.
This would make another potential wave 2 bottom, but one degree higher. What we just went through since the bottom of the 20th, we get to do all over again. I can only describe a potential move from an idealized chart of a zigzag in Intermediate degree, which we all know should contain a 5-3-5 wave count. Just like no two fingerprints are the same, every zigzag is also different and never perfect like they show you in the book.
Since any correction only took 1-2 days at most, then this correction should last a bit longer because we have stepped up one more degree level.
At the next strong bottom the bearish news should be making headlines again, but if crude oil ignores this news and starts higher than this is a good sign that a bigger bullish phase is in progress.