Crude oil price analysis shows that sellers are threatening to push crude oil into a bear market, as the reversal from the $65.70 level gathers pace.
A loss of the $57.60 level this week would provide a sentiment change amongst traders, forcing crude oil into bear market territory for the first time this year.
Crude oil medium-term price trend
Crude oil technical analysis over the medium term shows that sellers are testing towards its 200-day moving average for the first time since early December 2019.
A bearish reversal candle on the daily time frame from January 8 is clearly worrying crude oil bulls, following the huge $5.00 intraday reversal from the $67.70 level.
The daily time frame shows that crude oil’s 200-day moving average has been tested three times, and managed to survive the downside attack on each occasion.
With this in mind, bulls could soon rally back the price back towards the $60.00 level if they can gain traction above 100-day moving average, around the $58.80 level.
The $56.20 and $55.00 levels are the most important downside levels to watch if the 200-day moving average is broken this week.
Crude oil short-term price trend
Crude oil technical chart analysis highlights that the short-term bearish trend is in place while price trades under the $59.80 level.
The lower time frames are currently showing that the latest decline in oil prices has completely eradicated the existence of any bearish MACD price divergence.
A lack of clear bullish or bearish price patterns is also making it hard to predict the direction of gold in the short-term.
With this in mind, crude oil could start to settle in an established price range before making a decisive directional move.
Currently the $57.60-$60.00 price range look likely until a clear fundamental catalyst presents itself for crude oil price to deviate from the mentioned range.
Crude oil technical summary
Crude oil technical analysis shows that a new bear trend may start if sellers break the $57.60 support level. Failure to do so may result in a recovery back towards the $60.00 level.
