Oil seems to have found a bottom around the key $30 level for now. But there is no sign of a shift in the current bearish trend. Since October 2015 prices have been falling in a descending channel from the key $50 level down to $27 – the lowest level in 13 years.
In the bigger picture the market has a bearish outlook. Since mid-2014 prices have been making lower highs and lower lows. There was a sharp decline from around $107 to $43 in Jan 2015, then a slight correction to $63 then a drop again before falling sharply to $27.54.
On the weekly chart, RSI has reached oversold levels at 30 which suggests consolidation in the market for now. If the $30 level fails to hold, then the market could move another leg lower. To the upside, the $50 level is an important resistance level, which if breached, would lead to moves towards the May 2015 high of $63 and this would weaken the bears.
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