Picking bottoms particularly recently in the oil (WTI) complex, sometimes produces sticky fingers.
That said, one could build a technical analysis case for a bottom formation at current levels.
A) Longer term we have a completion of a Harmonic Bat. (insert)
B) Shorter term turn we have :
1) A completed Wolfe Wave
2) Black Swan harmonic formation
3) An ABCD formation going back to last August.
4) Oct/Nov double top target hit
5) Mildly positive momentum divergence
So how do you play this.
I would certainly give WTI a chance to find a bottom and advance upward
A penetration of 3 of the Wolfe Wave provides an entry point at $73.65(marked)
Then a Wolfe Wave Target is set up for late January at the $85 area.
Using the Black Swan harmonic we get targets as marked.
If this the best way to play bottoming oil ? Probably not but its a signpost to play your favorite horse.
Please note... Fed activity next week, year end illiquidity and Eastern European events should magnify WTI's volatility going forward.
Good Luck and I will update as needed.
Not investment advice, do your own due diligence.
S.