Oil prices remained within the range of 41.00 and 42.00 on Wednesday. Price briefly fell back to the 41.00 level before a slight bounce to the upside.
The consolidation, which is now over a week, could signal a possible breakout in the near term.
The bias is mixed for the moment but given the repeated test of 41.00 we could see oil prices pushing lower.
A close below 41.00 will send prices to test the next lower support area near the 37.50 – 38.00 region.
On the short-term charts, we also see the bearish descending triangle pattern emerging.
This would potentially confirm that oil prices could be looking to correct in the near term.