All 3 possibilites.
While market or specially Oil took some correction recently it also created a lot of new waves, specially for drilling companies.
Looking XOM as more “old-school” Oil chart here´s all 3 possibilities I see for it.
It is not bad news to see them all, sometimes with EW once potential W3 is behind allready meaning market most significant wave is passed things can also come easy for EW trading because alternation areas for all scenarios with it´s orthodox lows and tops starts to be same.
If we would be looking weekly chart for XOM, this entire impulse in the chart which is behind could be also only one big B wave for it ie. it´s alternation is still the same as it is with daily chart.
My best guess is sideways contracting pattern which can take multimonths to develop, it also concerns pretty much entire market ie. I don´t think we are going to move much with progressive mode anymore once summer comes, sideways silence is coming.
There is also fourth options that market is going to try to protect bullish impulsive scenario since we have hourly chart bullish W2 conditions set with DAX, CAC, SPX and Nikkei for this week. So far we saw first impulse for it, once and if it will be retraced with own W2 conditions it creates again another potential smaller degree W2 and DAX might try to attatck with it for 7800 which means for SPX approximately 1380 – 1400 value.
However, it also means that this running might be to become paused for longer time. This fourth scenario would be that this white labelling 4 is A wave, while white labelling 5 would be B wave and recent drop is C for it. However, it also follows all of this alternation ie. actual contracting triangle rules and it is unlikely this top will be taken out but more than likely that it will meet 50 – 86.2% upside corrective retracement.
Ie. sideways correction tends to take a lot of time to develop, it is not few weeks or one month procedure anymore to build pattern like that. We might be still in here or somewhere in the middle by August-Sebtember.
