40-44$ is the I mentioned in my previous analyses (see linked idea)
August's spike and the strong close above 40$, created a False Break that is being tested now. If the price will close below 40$ by the end of this month, it will create a signal that may lead Crude towards the X zone - near 30$.
As you can see in the upper chart, the price is now testing the neck line of a Pattern. A close below 38-37$ will probably expedite Crude's decline towards 30$ as this Weekly will be triggered.
If Crude will remain above 40$ (or even better, create a ), it could mean near term rally in oil prices.. at least towards the top of the - 44$.
Both the Fast and the 50 lines are now approaching the and will add more selling pressure on Oil .
Although things look , as long as Oil above 39-40$, I continue to focus on bulls side..
Tomer, The MarketZone
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