The odds for one more thrust down to test the primary uptrend line on /CL (crude futures) are still decent (around 50/50) as /CL has so far failed on the attempt to move back above the bearish pennant. Any test of the uptrend line will still offer an objective long entry or add-on to an existing position with a stop somewhat below. We’re still only talking about another 1% or so downside (or ~3% on the 3x leveraged UWT) if so (and assuming that trendline holds, if tested). As such, both UWT & /CL still offer an objective long entry anywhere from current levels down to, but not below, the primary uptrend line.
CL 60m Jan 10th
Note: UWT remains the official proxy for this trade although I put a higher-weighting on the charts of crude futures in my analysis.