A big reduction on crude inventories failed to convince the Bears to turn into Bulls in the Market. With Russia unlikely to agree to further OPEC cuts along with a number of other countries the world supply isn't going down at a fast enough rate. also people are finding more attractive investments to put their money in creating less demand for Crude.
You can see we had a pullback to the 38.2 on the from the beginning on the downward move from March where it just fell short of the 55 dollar mark.
We are likely to see a lower low where we are expected to challenge the $40 per barrel mark.
Lines draw for a diagonal Head and Shoulder strategy which is providing us more information and evidence in order to support the trade