The above chart shows potential price development scenarios before the expiry of this contract. The higher timeframes are showing signs of selling, any weakness in oil
at this point can be justified by long interest vacating their holdings at almost a 100% gain from YTD low. Though aggressive bears might join in for a swing lower, it is imperative to be looking for buying opportunities upon signs of weakness. Another way to buy the dip is to sell a put option, let's say a CL
Dec'20 strike @ $38.50, which would give the option writer a $1.5k premium at the current market, giving him/her a Break-Even price of around $37.00 where the stop sells would be placed separately on the CLZ0 contract.