US Oil has had an incredibly strong recovery since reaching negative territory back in April. It now seems we're running out of steam and levelling off, offering the potential of more downside. Following price action it now seems we're being squeezed into a flag pattern and approaching a boiling point (technical flag patterns have been proved to react well on both oil pairs).
I am favouring further downside to test previous low of $36.10 followed by $34.50 and finally $30.
Remember price may test higher levels before moving down so keep a long side bias available as well.
I am favouring further downside to test previous low of $36.10 followed by $34.50 and finally $30.
Remember price may test higher levels before moving down so keep a long side bias available as well.
Trade closed manually:
All positions were closed manually at $37. Waiting for price to test the $39 region before re-assessing. Bias is still short.