OIL went through its biggest monthly drop ever and is now trading near the 20$ monthly demand zone.

We have seen the market reacting to this area creating a new daily demand zone.

WHAT'S NEXT:

The market retests the new daily demand zone (red box at 21$), and we see a price transition on Lower TF:
- We could potentially have a buy biais but please, manage your risk as the momentum is still strongly bearish. Target would be at the last daily supply 33$.
- If we remove the daily supply, we will retest the 41$ weekly supply.

The market retests the new daily demand zone, but we don't see price creating strong bullish reactions on LTF:
- Be careful as the market could enter into a ranging phase before bouncing up. In other words, the market would have no direction at all.

The market breaks through the monthly demand zone:
- Bearish market continues with the next level at 13$.

In any cases, we already have seen a strong drop, so be careful if you consider to keep selling. The market could react super bullish to any small positive news.

Trade safe,

AT
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