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WTI Crude Oil Slides Back Near 50 as Bears Maintain Control

After a sharp slide in the second half of 2014, oil prices have stabilized in 2015. It bounced off a low on the year at 42.06 up to 62.58 and then consolidated around 60 from May through June. 

As we get into July, price is sliding again, showing that oil is still in a bear market.

WTI Crude OIl Daily Chart 
(click to enlarge)

A key technical sign is that price held under the 200-day SMA. Also, the RSI fell back below 40, and is now below 30, showing revival of the bearish momentum. 

This week, price is likely going to reach 50. We might see some consolidation around this sticky, psychological level, but after a period of consolidation, don't be surprised if oil prices continue to slide towards the 42.06 low on the year. 

If we get a bounce, look for resistance in the 56-56.50 area. If price climbs back above 60 however, the bearish outlook should be shelved.

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