Hi everyone.

A quick look at the patterns dominating the crude oil price right now.

The market is now overbought at an extreme again.

But that is nothing new for a second wave top.

Just look how bullish producers are according to the latest COT report.

Wave (3) down should begin over the coming weeks.

U.S CRUDE OIL

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Crude has dropped off the the morning highs with a fairly sharp move lower.
The extended nature of this rally is bound to cool off at some point,
but the question is;
will the price now finally drop off the highs in a five wave move.
To give us that bearish signal that I have been looking for.

I have labelled todays drop as wave 'i' down,
with wave 'ii' now underway to create a lower high.
If we see a sharp selloff tomorrow in wave 'iii' back towards the previous wave 'iv' low at 61.80.
That will be a good sign that the market has topped out.
A decline in five waves is what this week is all about!

Tomorrow;
Watch for wave 'iii' of (i) to continue lower.
The high at 64.79 should hold.