Wolfe Wave setup on $USOIL points to lower prices ahead

While Oil has made a short term recovery from recent lows around 26.00, a classic Wolfe Wave pattern is forming pointing to possible exhaustion and a drop lower later in the week into next. If Oil shifts above 35.50 it is time to watch for signs of weakness with defined resistance at 36.20 offering nice point to accumulate short entries.

Wolfe waves will typically run a complete 3 to 5 wave pattern down, so we could be looking for prices back below 30 in coming weeks.