Can USOIL Fall Off the Cliff?

The market continues to move within a large downward yellow channel. The price pushed off from the upper wall of this channel, after which we saw a smooth decline in the direction of its lower wall.

It is likely that the bears are now heading for the lower bound of this channel and the support level of 49.42. Confirmation that the bears are heading for this level will be a break below the nearest support level of 53.40, which is on the lower wall of the green channel.

If the price fails to break through the green line level and we see a rebound from this bound, then the bears’ plans may be called into question, and the bulls may intercept the initiative.