Since the market has a way to do things other than what everybody anticipates, It seems like a downside washout is more probable outcome in short term than a run up higher towards 60. We have been trading it with long / buy side bias and now it's time to get to the side lines and wait for better levels. Fundamentals aside, this is how we are looking forwards to trade it.
1. If a break of 50 comes fast, then a quick long during the pullback near 50 with tight stop just below 50.
2. IF a break of 50 is false, i.e. quickly returns below 50 then a short targeting 46 or below.
3. Wait for long near 44 / 40. It looks like a long way to go but if crude oil
starts moving than it reaches to the next support / resistance level
in very short time.