Oil Analysis: Testing Lows Before a Bounce?

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Price remains below key resistance levels and the monthly Point of Control (POC). I think within the next week, we could see the lows taken out, which would then be followed by a bounce.

The key question is whether the wave (ii) correction (red scenario) is complete, or if we are poised for another rally toward $67/bbl.

For now, we are maintaining careful short positions. Fading the trend at the potential end of a [B] wave is generally a fool's errand; I've even added it to my rulebook as a hard taboo.

The slightly longer-term chart snapshot suggests another potential scenario in green.

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