Since the start of the year the commodity plunged more than 20.5% and rose more than 0.5% this past week.
Last week crude oil went back and forward with a wide range, testing a weekly resistance and closed in the middle of the weekly range but also closing within the previous week range, suggesting market indecision.
The Stochastic is displaying a bearish momentum and is below the 50 mid line suggesting some weakness in the commodity.
Crude oil continues in a well-established bearish phase since the beginning of November and continues to trade below all three moving averages the 10, 50 and 200 week moving averages.
Expecting an upward move to year low at 37.74 on a break below previous week low at 40.40 (scenario 1) or a break above previous week high at 43.42 could push the commodity up to a weekly resistance at 47.78 (scenario 2).