After breaking below the rising wedge price pattern, MCX crude oil has steadily headed lower. Based on the minimum price objective criteria of the wedge pattern, we can expect further weakness in oil prices going forward. The immediate support for price is now at 2723/2683, while the wedge target is ~2480. Key resistance on the upside now lies between the 3050-3070 zone. As long as price does not move above this zone, the bias looks bearish.
On an immediate basis however, as intraday charts are indicating at oversold conditions, a minor bounce cannot be ruled out, especially if price breaks 2920. In such a case, we could see a minor recovery towards 2963/2988, before resumption of down move.
