You can see the dragon coiling up, ready to pounce, its tongue lolling out and indicating the next leg down.
And now I must admit I am only fooling. There is no such thing as a “pouncing dragon” pattern, in oil or anything else. This is just a reminder to not read too much into an extremely tricky market.
In truth, there is a lot going on in the crude markets.
- OPEC production is rising
- Iran’s potential surge, with its "superweapon" of 30 to 40 million barrels of oil floating in storage in tankers, read to go to market
- U.S. production plateauing and maybe rising higher
- Russia’s eagerness for exports, helped by a weak ruble.
Or do what you want. I'm not the boss of you. Good luck and good trades.