• Crude oil prices had one the worst selloff in history plummeting to near $20 a barrel in the last four weeks.
  • WTI appears to be stabilizing after the carnage but remains vulnerable to the downside.
 

Oil weekly chart

 
WTI collapsed abruptly in the last four weeks as the barrel plunged to its lowest since February 2002. 
 
 

Oil daily chart

 
WTI is trading within Wednesday’s range, consolidating the violent selloff. However, given the strong bearish pressure, it remains to be seen if WTI can regain some poise or if bears will come back and bring the market to new lows pretty soon. 

Oil four-hour chart

 
The market remains under strong selling pressure below the main SMAs as bears are looking for an extension of the selloff below the 22/20 price zone with scope to the 16 level on the way down. On the flip side, bullish will try to gather momentum above the 24 resistance with the idea to potentially reach the 28 and 32 price levels on the way up. 
 

Additional key levels