Crude oil prices remain on the downside, with risk for losses to the key 50.00 level. Technical studies support the underlying bearishness especially since the tenkan-sen crossed below the kijun-sen line in early July and the RSI is below 50. When prices fell below the Ichimoku cloud on July 6 this reinforced the bears. The 50.00 level is a critical level and acts as support. A break below it would accelerate a fall to 42.84 (March 16 low).Immediate resistance is at 53.79.
Looking at the bigger picture the trend has been bearish since the decline from 107.45 in June 2014 down to the multi-year low at 42.84. Only a move above 63.59 and above the 200-day moving average would weaken the bearish bias and shift it back to the upside.
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