Crude oil has been sliding since the early July breach of 45.83, an important support now turned resistance. It’s now fallen below the next critical support at 43.03, which is likely to usher in a persistent move to the downside.
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The break below 45.83 shifted the bias to bearish but with established support at 43.03 – 44.79 there was no meaningful downside progress initially. Now that this zone of support has been taken out, look for crude to work lower in a more persistent manner toward lower levels of support at 37.61 and 35.24.
The bias will remain firmly bearish while below high-volume area resistance established at 44.79 – 45.83.
