Oil has been trading inside a stable 1W Channel Up (RSI = 58.083, MACD = 0.440, Highs/Lows = 2.4914) since its December bottom. This pattern has been delivering clear entry (Higher Lows) and exit (Higher Highs) points. It was sustained by the simple factor of never crossing its previous 1D Support. On three occasions it held successfully but last week it broke.
The 1W Channel Up remains intact of course but the second bearish signal since the December bottom has emerged. The first was the rejection on the 66.65 1W Resistance as we have explained on April 9:
We expect the 4H bearish Channel (displayed with dashed lines, RSI = 39.556, Highs/Lows = -0.2693) to lead the price towards the final 61.90 Support and break-out point, crossing of which should result into the full -12.80% decline from the 1W Resistance. The target should be close to 58.15.
Oil will be strong again in Summer.