Crude oil prices were down close to 3% on Friday. This comes even as prices attempted to make a rebound earlier in the week on Thursday.
However, this rebound led to a lower high emerging. Following this, prices gave back the gains on Friday and lost the support from the trend line as well.
For the moment, the bias still remains to the upside. We need to wait for evidence to see a lower high forming in order to confirm the downside.
For the moment, the lower target remains the support area near 49.00.
In the short term, any rebound in prices could see the previous swing low near 52.30 playing a key role. If there is any rebound, then prices are likely to stall near this level.
A strong close above 52.30 could potentially see another short term game in prices.
Alternately, if we see a reversal near 52.30 or a continuation from the current levels, then we could expect the retracement towards 49.00.
