Well it kinda feels good to have exited my puts at 40.70 given the depth of the correction we've encountered.
The shape of the decline looks like a leading wedge, structurally looks good, and MACD reading suggests it's likely a motive wave rather than a corrective zigzag (no dip in readings at what I labelled w3).
Corrections to leading wedges are usually very deep, so the correction could end anywhere between 0.618 retracement (already fulfilled) or it could travel higher into 48-49 handle.
Shorting this setup through puts may be a good idea, mid Nov expiry should be OK, strikes 40-41 should yield at least a 1:10 payout assuming 30 is hit between now and then.
Also note that Crude is in inverse correlation with DXY, and as EURUSD chart suggests we are going to soon see a very good and fast sell-off in EUR, so Crude should follow.
The shape of the decline looks like a leading wedge, structurally looks good, and MACD reading suggests it's likely a motive wave rather than a corrective zigzag (no dip in readings at what I labelled w3).
Corrections to leading wedges are usually very deep, so the correction could end anywhere between 0.618 retracement (already fulfilled) or it could travel higher into 48-49 handle.
Shorting this setup through puts may be a good idea, mid Nov expiry should be OK, strikes 40-41 should yield at least a 1:10 payout assuming 30 is hit between now and then.
Also note that Crude is in inverse correlation with DXY, and as EURUSD chart suggests we are going to soon see a very good and fast sell-off in EUR, so Crude should follow.
