Oil has recently had a strong impulse down and then a violent short squeeze sharply back up again. While the fundamentals are pointing to further downside the short term is dictated by sentiment and extreme positioning.
The short squeeze could continue all the way back up to 48.5 and would still be within the down trend from the daily time frame.
My feeling is that going long from the lower trend line would be one option, although it may not return to that trend line for a while and just keep going straight up! The alternative is to wait for the trend line to break and then short.
Trade active
⋅
Shorting from the top trend line
Comments
CFDTradingo
⋅
It's at a very important price zone. Patience here is key, if it breaks up it's going to fly some more. I'm watching the lower trend line on this chart for a break https://down.https://www.tradingview.com/x/r1AQDoxz/