(MENAFN - FXOpen) Crude oil price started a fresh decline after it failed to climb above the $57.00 area against the US Dollar. The price traded below the $56.00 support area to move into a short term bearish zone.
There was even a close below the $55.75 level and the 50 hourly simple moving average. A low was formed near $54.79 and the price is currently correcting higher. It recovered above the $55.00 resistance area.
However, there is a major resistance forming near $56.00, a connecting bearish trend line on the hourly chart, the 50 hourly simple moving average, and the 50% Fib retracement level of the last decline from the $56.37 high to $54.79 low at $55.58.
Therefore, the price could struggle to surpass the $55.60 and $56.00 resistance levels in the near term. On the downside, an immediate support is near the $55.00 level, below which the price may drop to $54.40.