Oil has retraced roughly to VWAP of a 9-year megaphone (bright blue on chart). The original VWAP is closer to 60—it would usually go all the way to there, but typically it would be in the context of forming a bottom, starting here.
What would usually happen is that oil would now form an interior megaphone across the VWAP area. As you see the interior megaphone start to take shape with small waves, you can start playing the bigger waves.
If oil should somehow get through this VWAP area without a fight, the chart calls for $10ish. That’s very hard to believe, but would certainly be interesting.