Crude Oil has been in an extreme bearish market for the past week and traders are looking for a relief of this move. We have hit some interesting levels around the $40 handle. After the last bull market started earlier in February price hit a high around the $50.50 level and the long targets at the 227.7 Fibonacci extension, the price started contracting inside of a falling wedge and supported but the 44.50 level where buyers were stepping in guns blazing trying to keep the price up. They failed.
Since then the price has been dropping sharply breaking with the 44.50 level and the 42.5 / 42.74 POC.
Hedge Funds and money managers have cut their long positions on crude and have turned extreme bearish in this market. We are looking to sell but we need a rally to sell and we are aiming at the 42.50 zone for this opportunity.
