Crude Oil Loses 38.83 Technical Support

Oil prices succumbed once again, down over 4% intraday.

The declines accelerated after the commodity failed to hold on to the gains above 38.83.

Following the breakdown off the 38.83 handle, oil prices lost more than a dollar.

Price action is hovering near the 37 levels. This marks the previous decline from early October.

The main support, of course, is near the 36.50 handle. The Stochastics oscillator is a bit oversold, so this could see price action posting a modest rebound.

However, there is scope for price to decline further down to the said support area. To the upside, gains will be limited to the 38.83 level where resistance could step in.