Crude Oil Follows Our Near-Term Technical Script, Traverses Its Feb-Mar Bullish Channel

Crude Oil is down another 2% this morning, after spiraling down nearly 4% yesterday in reaction to a much greater than expected build in Weekly Inventories.

Let's notice that the weakness off of Tuesday's recovery-rally high at $41.90-- against the upper-channel boundary line-- has traversed the entire width of the channel, as the price structure probes the lower-channel boundary in the vicinity of $38.50, where the weakness should be contained, ahead of renewed buying interest.

That said, my intermediate-term work also has rolled over, and suggests strongly that any bounce off of the lower-channel boundary line will be short lived ahead of downside continuation towards $36-$34.