The breach below 45.99 to bring in more space but strong support at 43.36.
On the weekly chart, this energy commodity forms Gravestone & at peaks of 48.93 and 47.58 levels respectively, and that is where it has tested a stiff resistance at 49.22 levels.
Finally, bears have managed to suppress the attempts to head towards 1-year highs at 51.64, as a result, the current prices slid well below 7EMAs, heading for next support at 43.36.
Well, we reckon the recent intraday rallies are unlikely to sustain or to evidence any dramatic bounce backs in the near terms as there are no indications from both leading as well as lagging oscillators.
Daily and oscillators converge to the prevailing slumps and evidencing consistent lower lows.
While the slow evidences and sustains %D crossover even near oversold zones on intraday plotting and %D crossover at overbought territory on weekly graphs (currently %D line at 74.4722 & %K line at 63.0268 while articulating), so overall we see selling pressures in this commodity at the current stage.
At current juncture contemplating above indications, on speculative grounds we recommend shorting near month for target towards $43.36 levels.
Writers in a contract are expected to post performance bond margins in order to open and maintain a short position.
These margin requirements are determined by the exchanges and would usually be ranging from 2 to 10% of the full value of the contract.