This is not the best setup , I'm not going to trade this because right now there are much better possibilities on the market. The 2 reasons it's worth taking a shot : 1. 200 SMA 2. Time wise we are arriving into the timing band of the possible ICL decline.
After the severe declines the 200 SMA acted as an important resistance many times
I used it in a few ideas too:
Right now we are in the 3rd daily cycle of this intermediate cycle.Oil had every chance to break the 200 SMA and start a trending move. It didn't happen though.
The 50 SMA and 200 SMA forms an unbreakable resistance after the strong uptrend from the negative prices.
I'm expecting a bottom between the end of October and middle of November. I will use the Fibonacci retracement to set a target: the 50% retracement seems a reasonable target in this decline.
Komen
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Party is starting.
Komen
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Testing the previous DCL.
Komen
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Oil broke the previous DCL. We have a failed DCL in progress.