CXO - Chart Thread, page-4375

Short term top looks to be in place with a nicely completed 5 wave structure coinciding with the 0.5x upper median line, which has acted as resistance on 2 previous occasions. Also some bearish divergence on the MACD emerging at this point.  These TA factors (as well as some of the bearish media) has contributed to an unusually large sell-off, similar to what we saw on June 1.  I expect this to continue (even if we do bounce slightly, as also happened after June 1) and have indicated a possible retracement zone on the chart.  We're currently near the 38% fib retracement level but could go as low as 50% fib ($1.44) or 62% fib ($1.35).  The 62% fib retracement level also corresponds roughly with the 0.5x lower median line.  With the sudden bearish sentiment looks like we'll be trading sideways or lower for the next few weeks but my posture remains bullish overall and still expecting to see $2+ once we get through this next round of corrective wave action.