FX.co ★ CL/Crude Oil

Sellers in oil (#CL) became active again last Friday and as a result of the subsequent decline we were able to break through the support level around 70.85 without much trouble and consolidate below it. Volumes during the decline and the breakout of this level were quite high and gradually increased, which indicates that large bears are building positions; in turn, this increases the chances of seeing a further decline in the pair. Overall, shorts are my priority, so for oil (#CL) next trading week I’ll first be looking for another test of the resistance level at 70.85, followed by a bounce from it and a renewed decline toward targets around 68.00.