Oil prices managed to pare some of the losses from the day before on Friday. But price action closed somewhat flat into Friday’s session.
The break down of the trend line could suggest a possible decline further in the near term.
Price bounced off the support area near the 39.00 level to retest the trend line from below.
If price fails to move above the 41.00 handle, then we could see a possible move lower below the 39.00 level.
The main support area is near the 37.50 – 38.00 level which could be tested if the bearish momentum picks up.