Since the start of the year the commodity plunged more than 33.1% and fell more than 11.5% this past week.
Last week crude oil fell with a wide range, testing a Fibonacci extension and closed at the low of the week, but also closing below the previous week range, suggesting a strong bearish momentum.
Crude oil continues in a well-established bearish phase since the beginning of November and no bottom in sight as it made a new multiyear low last week.
The Stochastic is displaying an oversold market although it continues to show bearish momentum.
Expecting a downward move to a Fibonacci extension at 226.07 on a break below previous week low at 35.14 (scenario 1) or a break above a key level at 37.74 could push the commodity up to a weekly resistance at 43.56 (scenario 2).