Crude futures (Light Crude March 2016 – CLH2016) are consolidating in a narrow band below the former support level at $45/barrel. Breach of $43 is likely and would indicate a test of the August low at $41.20. Follow-through below $41 would warn of another decline, with a target of $32/barrel*.
* Target calculation: 42 – ( 52 – 42 ) = 32