I believe we are beginning to see the beginning stages of a break-down in oil that would have it trading around mid 40s soon.
On the daily tf, we can see a series of lower-highs created, with this last leg showing compression into a fresh daily level of supply (top grey box). A nice bearish engulfing candle was created last friday off of that fresh supply zone and looks like a continuation further down may be in store.
51.1 is an obvious demand level which can be tested, but without enough demand left in that level, i am seeing this break-down to be even more likely.
Again, i'll be analyzing this move down (if it happens) on lower time frames, where i'll be looking for opportunities to go short.
On the daily tf, we can see a series of lower-highs created, with this last leg showing compression into a fresh daily level of supply (top grey box). A nice bearish engulfing candle was created last friday off of that fresh supply zone and looks like a continuation further down may be in store.
51.1 is an obvious demand level which can be tested, but without enough demand left in that level, i am seeing this break-down to be even more likely.
Again, i'll be analyzing this move down (if it happens) on lower time frames, where i'll be looking for opportunities to go short.