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Crude is testing critical support zone

Crude is testing critical support zone

Crude Oil WTI NYMEX:CL1!

Oil is testing the bottom of a weekly support zone.
40-44$ is the support zone I mentioned in my previous analyses (see linked idea)
August's spike and the strong close above 40$, created a False Break that is being tested now. If the price will close below 40$ by the end of this month, it will create a bearish signal that may lead Crude towards the X zone - near 30$.
As you can see in the upper chart, the price is now testing the neck line of a Head and Shoulders Pattern. A close below 38-37$ will probably expedite Crude's decline towards 30$ as this Weekly Head and Shoulders will be triggered.

If Crude will remain above 40$ (or even better, create a bullish Pinbar), it could mean near term rally in oil prices.. at least towards the top of the support zone - 44$.
Both the Fast and the 50 SMA lines are now approaching the support zone and will add more selling pressure on Oil.
Although things look bearish , as long as Oil above 39-40$, I continue to focus on bulls side..

Tomer, The MarketZone
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