Sellers became aggressive as buyers eventually became sellers (liquidating losing positions) which is the opposite of a short-squeeze (this is a “long liquidation” event).
When OPEC refused to reduce production (supply) on the falling price, it only sent the price lower as demand decreased (with weakening economies) and the same level of supply.
Nevertheless, the price pattern developed an exponential curve, more popularly known as an “Arc Trendline” pattern.
For now, we wait for price to continue falling sharply until it breaks firmly through the upper trendline which is quickly moving but currently near the $56.00 to $57.00 level.
Price can snap-back quickly on a trigger-breakthrough as short-sellers rush to take profits (buying-back to cover) while aggressive bulls (buyers) step in to call that elusive bottom.
Focus on these trendlines and the $55.00 to $60.00 per barrel price level.
This article is brought to you courtesy of Corey Rosenbloom from Afraid to Trade.