Oil has bounced off the bottom of a potential price channel (red on chart). If it should make a new channel high before breaking the channel bottom, it will be in its critical decision wave for setting up a melt-up vs. forming a channel top.
A melt-up set-up (purple on chart) would target 75.
If oil kills the price channel set-up or elects to form a channel top on a new high instead of breaking out into a melt-up, it’s forming either a triangle (navy blue on chart above) or a megaphone.
Here are the scenarios on the 60-minute chart:
The green scenario is the most likely at the moment.