CLZ2021: A Potential Fade CRUDE OIL FUTURES (DEC 2021) NYMEX:CLZ2021 Zoen_Trieste The oil price has seen a massive rally since the Mar'20 lows. The market went from a contango market into a heavily backwardated market on the back of the continued OPEC supply cap coupled with a decent pickup in demand. However, the market seems to be in an overextended state and can potentially form a corrective pattern resulting in a 20% decline from these levels. The reasons for this would be: Long open interest quitting the market; Aggressive shorts entering on a confirmation; Weaker hands getting sweaty hands and deciding to follow suit We are targeting a selling area here and are looking for signs of validation of this setup. If higher timeframes close with a wick in the $70 area, that could be interpreted as sellers stepping in. This is a counter-trend setup, which means the odds of a winning trade are slim. We are, therefore, waiting for a confirmation and prioritising risk and reward profile which is always on the other side of probability. Let us see how this unfolds. Stay healthy and best of luck!