I'm thinking, we might see one more push to this channel, although 42pb is a big ask, then a possible drop to 36pb. This coincides with the large megaphone S&P500 resistance pattern. Due to a rise in new cases of coronavirus, there is lower demand for oil and reserves will begin to increase. Over supply and low demand could pull WTI down. With jitters from US election, increase in new covid cases and technical levels of S&P500 hitting heavy resistance, this could lead to a lack of liquidity and profit taking. As we've seen for most of the year, many assets have been moving together. That could also play into a pan sell off. Not financial advice. Speculation only
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$41.90 was taken. That would be mid term top I think. Now has begun its impulsive move down.
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$38.53 at the moment. We may see some support here (from the peak of 9th Sept). some profit taking here is not a bad idea in my opinion
Trade closed manually
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Although the oil price has dropped and may well continue to go lower, I think now is the opportunity for the equity market to turn bullish here. A lot of stocks breaking out of the down trend. Price of USOIL now $38.85 I.e. I am now neutral oil and moderately bullish stocks