Oil Head and Shoulder Completed

Not to long ago I suggested that the head and shoulder pattern in oil would be a failed H&S formation.

Mainly because the idea of $10 oil seemed unlikely. But there you have it- target reached.
I also wanted to point out that the negative price of oil was really just the longs buying out the shorts. As a future contract expires you have two choices: Roll over to the next month or stay in the market and fulfill the contract. If you are long are you expected to take delivery of the oil. If you are short you are expected to deliver the oil. In this case, each contract is 1,000 barrels. Usually, everyone rolls over the contract a few days before the contract expires. Practically, I do this because volume dries up and strange price movements occur as you get closer to expiration.  On the last two days of trading before the May contract expired, the longs wanted out and did not want to take delivery. Mainly because of storage price and they had no place to put the oil. So the CME allowed a negative price to be traded so the longs could get out.
Consider an example.
I plan to open a car lot and sell used cars. A few days before the opening I plan to have the cars delivered from Company A. I enter into a contract with Company A that states I will take delivery of 500 cars on date X. But something happens with opening up my car lot and I am unable to get the lot. Company A is set to delivery a few hundred cars but I have no place to put them. So rather than have Company A dump 500 cars on my front lawn, I buy out of the contract. I send them a check to allow me to renegade on the contract.
The CME allowing negative prices to be traded was similar to the above example. There was no place that existed you could go to, pick up oil and the person giving you the oil hands you cash.