Crude Oil completed a rising megaphone top today (red on chart above). Basically that cuts off an attempt by oil to put in a new high within the megaphone bottom (silver) it’s been forming since mid-January.
That theoretically frees oil up for a breakout downward from the silver megaphone. But that is unlikely to happen. That’s because oil has already begun forming interior megaphones across the silver megaphone VWAP. That means oil is likely to stay range-bound for a while.
We’ll likely see something like the pink triangle form. After the pink triangle completes, oil will probably make one final wave down to the silver megaphone bottom, and that will be the low before a sustained long-term move up.