Crude Oil initial test of bearish Bat PRZ (Potential Reversal Zone) is attempting to retrace, the ideal minimum retracement targets are the GRZ (Golden Ratio Zone) levels outlined in blue rectangle. Failure to reach these targets implies retest of Bat PRZ. Currently the bias is to downside into support levels, however there’s a small channel called a bull flag to keep eye on because if price breaks to the upside outside of this channel, it is a caution signal to protect a short position by either exiting or taking profits depending on the short entry price. If price breaks and holds above 90.78, offers a long opportunity to the Crab PRZ at 93.94 w/ scaling pts at 92.17, 92.74 & 93.34.
The profile shows P shape, indicative of short covering rally. Initial key levels to break & hold are either above 90.18 which has next upside target at 90.86 (note how this would be a break thru significant level 90.78), or below 89.46 to take care of unfinished business having targets at 88.99 & 88.43.
When volume profile and harmonic key levels don’t match closely, they create a “zone” that has potential of price testing all levels within that zone.