CL1 - Did The Dominant Trend Resume? 🧐

Oil has become very bearish since $94 and to remind; that was just beyond the 1:0.618 Golden Window and long term trendline which was our topping target (see linked idea).

We had also considered that it may get up to the blue long term retracement Golden Window @ $96, but the 1:0.618 that was just shy of that price area captured the top.

There may be some significance to this because any ratio shy of the 0.618 could be a clue that the retracing wave is a connective wave to see a third wave down, potentially to find new lows.

And so with oil looking very bearish here the question is whether a recovery is coming or the dominant trend has resumed here to go lower.

Retrospectively the short setup we took may have actually been that of a higher time frame pivot.
And as we looked at in a previous video, the choppy contraction pattern proved to be a connective wave to go lower and as it did tidily hit the 0.618 retracement, the opportunity was there to re-fire another short.

And now you can see retrospectively that our take profit price was just before connective wave bounce
Today oil is printing a very bearish candle and there are a lot of liquidity landmarks in this area: the long term trendline, 50WMA 200DMA that oil has now crossed, and just below is the 1:1 extension Golden Window and the blue retracement Golden Window.

So very soon we should gain a better understanding of what will happen next with oil. If it is going to hold this area it does need a hard bounce soon 🧐.

Not advice