Crude Oil

Here is an hourly chart showing pit trading in April crude oil futures.

I think this market is headed for the next downside target in the 56.80- 57.20 zone.

Notice how the drop from point e has gone farther and lasted longer that the drops from a to b and from c to d. Moreover, looking within the swing downward from e we see that the successive breaks are expanding in extent and duration. Finally, the down bars in this swing show consistently big ranges compared with the up bars. This indicates that volume is heavier on the downside and sellers are confident and agressive. All these considerations point to the same conclusion: much lower prices lie ahead.