Crude Oil Experiencing WXY Decline

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I initially thought crude oil was experiencing a wave 4 correction, but oil's decline to 90.56 on July 14 seriously calls that interpretation into question. It appears that oil may have finished a truncated fifth on June 14 and is now entering a primary correction. If this is the case, I believe it will probably be a WXY correction because I can already count an ABC pattern down. Still, the correction is too small to be a primary correction, implying a combination such as WXY.

Another reason to take a relatively bearish stance on crude oil is that crude oil has bearish seasonality until about mid-August. If you bought and sold oil on July 22 and August 8, respectively, every year for the past ten years, you would have lost money for 7 of those years. Even if you waited to sell until August 21, you would still have lost money for 6 of those years.

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