I can see a clear trend reversal after hitting a major resistance point at $50. This leads me to believe than in the short-run there is enough room for oil to tumble. Scenario #1 is that there is a weekly window during which oil will fall to around $45 and bounce off. Scenario #2 is that oil tumbles down to its previous major level of support at $29. Overall I have a bearish sentiment on oil. This mainly stems from OPEC's inability to regulate supply. More specifically, I see no intention from S.A. to cut its supply. This leads me to think that the market will revaluate oil at around $30. That is mainly due to S.A.'s ability to produce oil at a cost of $20-25 -per barrel which in the short term will create a market failure.
Trade closed: target reached