Crude oil prices will rally in the near-term, but then investors will see another sharp selloff that will take crude back down to seven-year lows, according to one technical analyst.

Looking at the chart for light, sweet crude, prices will rise to $76 to $80 in the next two months, Dick Otto from Matrix Asset Management said Friday. But then another slide is expected.

"What we seen when we look at the move down from $130 to $50 is an impulsive wave," Otto said.

After the near-term rise, the next wave will also be "impulsive," with prices touching the 2001 bottoms of about $20.

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Once prices reach those levels, "we have completed the correction down and then we will find, in the next four to five years after that, an up market," he said.

Looking at the Dow Jones Industrial Average, volatility will go down through the end of the year, but the trend will be down again starting in 2009, Otto added.