WTI oil bounces from the 40.00 level

WTI oil broke yesterday below the 40.00 level, but it couldn’t stay below that level and today it goes back above it as shown on the daily chart. Although the price bounces today from the 40.00 zone, the price of oil stays within the bearish channel and the current pullback could be on profit taking; therefore, there is a high probability of oil continuing down. If oil continues falling, then it may try to reach the support at the 37.00 level. To the upside, if oil continues correcting higher, then the 42.00 level could act as a resistance.