From Capital Commodity Investments:

rude is still in a down trend but the market is showing signs of buyers below. The fundamental situation has not changed and production does not look like it is going to change any time soon. What is happening in the market looks a lot like what happened when the market consolidated between 45-54 dollars. The rallies looked strong and sucked everyone in but they all failed and eventually made new lows. What you have to realize is that markets have to consolidate in order to build more energy for the next move. When a market goes straight down like crude has nobody wants to sell it down here because the risk reward is not there any more. So the bottom line is trade this market like a trading range. Look to buy near 29-30 and sell near 35.00, continue to do this until the market breaks out one way or another. Do not get fooled into trying to buy the break out, it will eat you up. If you are a breakout trader then let the market breakout first and then look for an entry. I still favor the downside with 20 as my long-term target.