In this chart we can see a pause in the decline, probably induced by short covering in a massive scale. Despite this new-found bullish strength, oil indicates it wants to resume the downtrend anytime soon, by displaying a flag pattern, for geometric chart pattern traders, weak bar closes and attempts at extending the range upwards being met with strong selling and decreasing volume on rallies.
Tim West's indicators point to a bearish bias, with the range expansion volume bars showing only red bars. Rgmov is currently ranging but any breakout of the last new low in this indicator will probably lead and confirm the short.
It's clear to me that the technicals in this chart indicate the best risk/reward will be offered by short positions, with an invalidation level on a clear breach of the white line in the chart, and a target at 50.25 initially.
Good luck to all traders, and enjoy the cheap gas while it lasts.
Updated chart.