The correction has taken the shape of a wedge, which looks like a continuation pattern, as it appeared after an uptrend. Three waves make up the correction.

The third wave labelled c is shorter than the wave a, roughly 76.4% of the latter.

This relation suggests a prevailing bullish sentiment.

Support is at $55.18, a break below which may cause a fall into $54.40-$54.83 range. On the daily chart, oil stabilized around a support at $54.50, the 261.8% projection level on the uptrend from $39.34.

The contract failed twice to break this support. The failures indicate the formation of a small double-bottom.

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