Crude oil falls from heights! Next level $57.50?

In our last analysis, we were targetting $65.50+ on oil and we got our profit target with a little help from the increased Middle Eastern tensions. From there the news subsided for the most part (tensions still high) and everything was priced in. Causing Oil to regulate back down to the "normal" levels. Price plunged through all the immediate support levels. Through $62.50, $61.00 and even $59.50.

From here there are two short term opportunities. The bulls or the bears.

The current intraday price action suggests there's more downside with the descending triangle. First the support structure at $58.70 has to collapse for price to continue to lows. We could see price use that broken support as resistance on the retrace which will confirm the downside. The downside target is first at $57.85 then $57.00.

There could be a late run by the bulls through the immediate resistance. If price moves above $59.65 and holds it as support on the retrace we could see $61.00 oil yet again. The downside volume is, however, coming out pretty aggressively.

This idea is for educational purposes only. This does not constitute as trading or investment advice. TRADEPRO Academy is not responsible for any market activity.