The drop on Nov. 10 suggests a resumption of the downtrend, which has been developing within the triangle since Oct. 17.
This pattern will consist of five waves, with the fifth wave labeled v unfolding towards the lower trendline of the triangle, which is about $74.
However, a more realistic target could be $75.84.
Before falling towards the target, oil may first pull back to $78, a resistance established by the trendline rising from $75.84.
The views expressed are his own.
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