Oil made a new high in the past few trading days around 103.70 from where we saw a minor decline in the second part of this past week. Well, a decline is still not impulsive a lower time frame, means its not in five waves yet, the only structure that can confirm a change in trend: But we however can see that prices are already testing a very important support line connected from 74.80, where a breakout will definitely suggest that top was made for wave (2) and that this market will move much deeper.

Do not forget that a decline from 2011 high was made in five waves, so we definitely expect that this bearish direction will continue this year! Check the weekly chart for larger wave count.