We saw oil prices stabilize in the past couple of months since it hit the low on the year around 43.50. The daily chart shows that the market rallied to 54, near a previous consolidation support, and found resistance. Also price held for the most part under the 50-day SMA, and the RSI was kept under 60. These were signs that the prevailing downtrend is still intact and the momentum is still in play. WTI Crude Oil Daily Chart 3/16(click to enlarge)Now, price is threatening to break into new lows on the year, and with the wind of the prevailing downtrend on its back, WTI Crude Oil should be able to push lower. The question is how low can it go. In the short-term, we can expect an extension that is similar to the width of the broken consolidation, which is about 10.00. This would target the 33.50-34 area. When we look at the monthly chart, we can see that this area also contains the common lows in 2008 and 2009.WTI Crude Oil Monthly Chart (click to enlarge)