Crude is testing critical support zone

NYMEX:CL1!   Light Crude Oil Futures
Oil is testing the bottom of a weekly support zone .
40-44$ is the support zone 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 bearish signal that may lead Crude towards the X zone - near 30$.
As you can see in the upper chart, the price is now testing the neck line of a Head and Shoulders Pattern. A close below 38-37$ will probably expedite Crude's decline towards 30$ as this Weekly Head and Shoulders will be triggered.

If Crude will remain above 40$ (or even better, create a bullish Pinbar ), it could mean near term rally in oil prices.. at least towards the top of the support zone - 44$.
Both the Fast and the 50 SMA lines are now approaching the support zone and will add more selling pressure on Oil .
Although things look bearish , as long as Oil above 39-40$, I continue to focus on bulls side..

Tomer, The MarketZone
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Comment: Nice spike from 40$ today thanks to Saudi Arabia. 40$ holds as support


Target is 44$ now or retest 40$ again?
I guess 43$ first.
Could reach 40$ again, its still part of the scenario
IRLKori themarketzone
I'll wait as the movements are very extremes
Hi. I am agree with you, but the question is why doest it fall straight after when it was raised? Testing levels? Almost closed bellow 40. What you think for next week? Thank you... Kori
Hey Kori, didn't understand your question. You can send me an email if you wish.
Regarding next week, 40$ will continue to be tested. As mentioned above, I wouldn't want to see Crude dropping below 39.5$.. it'll be considered a bearish signal
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