FxWirePro: Bearish trend persists in US crude; short crude futures for TP at 55

Technical glimpse:

We reiterate the downtrend for crude is not only in major trend but also the short & medium trends' downtrend are intact as the hanging man pattern which was occurred at 60.30 levels at the end of May needed a confirmation, now that has been backed up by both oscillating indicators (RSI & stochastic) showing downward convergence with the falling price and flurry of bearish candlestick patterns have been displayed back to back.

The hanging man followed by shooting star patterns displayed at around 59.17 levels with long upper shadow and its small real body is at or near the lows of the session. Shooting Star shows trouble overhead. Because of the Shooting Stars long bearish upper shadow, we don't need any confirmation like the Hanging man.

The prices have almost breached a crucial support at 59 levels with day to spare  if it manages to break then we foresee all chances dragging until 55 levels. This Gravestone Doji appeared on a market top and the next candle also falls to the downside, it is a strong confirmation that the earlier doji's signal of market topping.

On weekly graph, CL1! futures is a sell as slow stochastic shows signs of overbought pressures. %D line crossover above 80 level indicates the boiling pressures of overbought scenes. (%D line at 91.7556 & %K line at 83.8919). So fresh short build ups can be seen at current levels for a target upto 57.5 and even upto 55 levels in medium terms using near month contracts of CL1 futures.